How a cramdown saves money
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.
Time requirements for a Cramdown on Vehicle Loan
The time requirements for a cramdown on a vehicle loan in Chapter 13 requires that your loan is at least two and a half years old. But there are exceptions to this.
Qualifying for a Cramdown
To qualify for a Chapter 13 vehicle loan cramdown, mostly your loan must be at least two and a half years old. There are exceptions to this.
Decrease your Auto Loan
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.
Reaffirming your Vehicle Loan
If you want to keep your vehicle and still pay on its loan, file a Chapter 7 case to write off other debts and reaffirm the vehicle loan.
Reaffirmation Agreement vs. Chapter 13
When is it better to reaffirm a secured debt (such as a vehicle loan) in a Chapter 7 case vs. handling it instead in a Chapter 13 case?
Chapter 7 Buys Time to Change to Another Vehicle
Filing a Chapter 7 case stops repossession of your vehicle temporarily. If you are getting another vehicle, that can be valuable time.
Lowering Your Vehicle Loan Payments through Chapter 13 Bankruptcy
"Cramdown" of your vehicle loan can solve the problems of a reaffirmation agreement by lowering payments and protecting you much better.
A Fresh Start on Your Vehicle Loan through Chapter 13 “Cramdown”
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.
Chapter 7 and Chapter 13–More Vehicle Loans
The second scenario, the Chapter 13 solution for keeping a vehicle if you're behind on payments.
Chapter 7 and Chapter 13–Vehicle Loans
Two similar scenarios, two very different solutions for keeping a vehicle if you're behind on payments.
Crucial Question: Can You Keep Your Vehicle WITHOUT Catching Up on Its Payments?
You can save your vehicle with Chapter 7 if you can quickly catch up. But if you can't, consider Chapter 13.
Crucial Question: Can Bankruptcy Allow You to Keep Your Vehicle Even If Behind on Payments?
Bankruptcy can make it possible to keep your vehicle. You have two ways, depending on how much help you need.
Crucial Question: Can Bankruptcy Stop My Vehicle from Being Repossessed Even If I Am Surrendering It?
Bankruptcy will stop a repossession very fast. Then a month or so later you surrender the vehicle, but gain some key advantages.
The Extraordinary Tools of Bankruptcy: Rewriting the Payment Terms of Your Vehicle Loan through “Cramdown”
If your vehicle loan is more than two and a half years old, you can maybe lower both your monthly payment and the total amount to be paid.
