The surge in used car prices post-pandemic along with high interest rates caused car payments to be less affordable for hard-working people. Now, car payment delinquencies have increased, putting people at risk of losing their sole source of transportation to repossession.
Bankruptcy can help in so many ways. In a Chapter 7 bankruptcy, there are options to refinance a vehicle for the value of the vehicle (called “redemption”) at an affordable monthly payment. In a Chapter 13 bankruptcy, the car debt may be reduced significantly, both in principal and interest.
If you’re struggling to make your car payments, but you need your car to make a living, please reach out to us for a free consultation.