Here's an example of vehicle loan cramdown that shows how you can reduce your vehicle payments and be free and clear after paying less.
Vehicle loan cramdown doesn't just likely reduce your vehicle payments and the total you pay. You'd also not have to catch up on late payments.
If you can’t afford to pay your vehicle payments even after writing off your other debts under Chapter 7, consider decreasing your auto loan through a Chapter 13 cramdown.
Can you keep your vehicle without reaffirming its loan? Can you make the payments without reaffirming? What if you can't afford the payments?
When is it better to reaffirm your secured debt--such as a vehicle loan--in a Chapter 7 case or instead cram it down under Chapter 13?
Here's an example of the reaffirmation of a vehicle loan in a Chapter 7 case vs. "cramdown" of the debt in a Chapter 13 case.
If your vehicle is worth less than you owe on it, with good timing cramdown could reduce your monthly payment AND the total amount you pay.
Chapter 13 vehicle loan cramdown solves a number of serious practical problems that even Chapter 7 "straight bankruptcy" can't.
You can most likely "assume" your vehicle lease and keep that vehicle under Chapter 7. But you need to be current or able to be quickly.
Chapter 13 gives you powerful ways to hold onto a vehicle, but it also lets you give up that vehicle without paying its debt.
Want to keep your leased vehicle but aren't current on the payments? File a Chapter 13 case if you can't get current right away.
Keeping a vehicle and its debt is sometimes not the best option. Chapter 7 and Chapter 13 can both give you a safe way out.
"Cramdown" of your vehicle loan can solve the problems of a reaffirmation agreement by lowering payments and protecting you much better.
If your vehicle is worth less than you owe, Chapter 13 "cramdown" can reduce your monthly vehicle payment and the total you pay on the loan.
You may be able to keep your vehicle for less money by "redeeming" itâpaying its present fair market value instead of the full debt.