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.
Are you Behind on Your Auto Payments
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.
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.
Keep Your Vehicle without Reaffirmation
Can you keep your vehicle without reaffirming its loan? Can you make the payments without reaffirming? What if you can't afford the payments?
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.
The Surprising Benefits: Ending Your Vehicle Lease under Chapter 13
Chapter 7 gets you out of a vehicle lease owing nothing. Chapter 13 is more complicated but can give you pretty much the same good result.
