When you are facing financial hardship and are unable to make loan payments on time, your car could be at risk. Like your home mortgage, a car loan is a secured debt and is subject to repossession if you miss a payment. If you are being threatened with repossession, you are probably in an overall stressful financial situation and need help. It is important to know that financial solutions are available and an experienced bankruptcy attorney from Hines Law serving the Boston MA, area can advise you about the possible solutions that are open to you.
Chapter 13 bankruptcy could be an option for you.
Chapter 13 protection in Massachusetts, allows you to reorganize the back payments on your car and pay it back with more relief than your original loan agreement.
A Chapter 13 reorganization plan can be structured to last up to five years. This can lower your monthly payment if you owe less than five years on your vehicle because it gives you more time. Also, if your loan has a high interest rate, Personal Bankruptcy allows you to repay the loan at a lower rate. Furthermore, depending on how long you have been making loan payments, the court may allow you to pay back the current value instead of what you really owe.
Reorganizing your secured debts, including your car loan by filing for Chapter 13 personal bankruptcy may be an option for you. It is a fair way to pay back your creditors based on what you can afford. Our Law Firm located in Massachusetts can help you get the process started. Our lawyers are experienced and will help every step of the way. Call us today for a free consult!