WE MAY BE ABLE TO REDUCE YOUR CAR PAYMENTS AND INTEREST RATE:
If your loan is over 2 1/2 years old, and you file a chapter 13 bankruptcy, the law will allow you to pay the actual value of the car at a reduced interest rate provided you owe more than the value of the car.
If you owe $24,000 and your payments are $600 per month but your car is only worth $18,000, we can propose a plan to the court that would allow you to pay $18,000 @ 6% interest at $300 per month for 60 months. The balance may be paid at pennies on the dollar.
Bankruptcy will stop a Repossession immediately. Upon the filing of a bankruptcy petition the law will immediately stop any actions to take your car. If your car has already been taken, we may be able to get it back. You must file before it is sold. In Virginia, a creditor has to give you at least 10 days to redeem your car before they can sell it. Some creditors will move your car to a distant location and require that you provide proper insurance, pay all storage and towing fees as well as pay to have it returned.
Filing for Bankruptcy can STOP the sale of your home or foreclosure instantly. Upon the filing of a bankruptcy petition the law will immediately stop the sale of your home. A Chapter 13 bankruptcy will allow you to take the back payments and pay that out over a period of time up to 60 months. An example would be if you are $6000 behind on your payments the Bankruptcy Court would allow us to file a plan in which you could pay $100 per month for the 60 months. As long as you are able to make your regular house payments and pay the $100 each month the court would not allow the mortgage company to foreclose on your home.
A garnishment is a court order directing that money or property of a debtor be seized to satisfy a debt owed by the debtor to a creditor.
For bankruptcy purposes we see two types:
1. A wage garnishment is one that allows creditors to legally require your employer to hand over part of your earnings in order to pay off a debt.
2. A non-wage garnishment is one that the creditor places a levy on your bank account. As a bank levy, creditors can tap into your bank account.
If your loan is less than 2 1/2 years old, the Chapter 13 bankruptcy will allow you to take the back payments and pay that out over a period of time up to 60 months. An example would be if you are $3000 behind on your payments, the Bankruptcy Court would allow us to file a plan in which you could pay $50 per month for the 60 months to catch up those payments. As long as you are able to make your regular car payments and pay the $50 each month, the court would not allow the creditor to repossess your car. ( You must have proper insurance)
Another option may be to pay out your car over the 60 month plan. If you owed $6000 on your car we could propose a plan to the court in which you would pay $100 per month for 60 months at a reasonable interest rate.