It is a common situation to be upside down (you owe more than your car is worth) on your vehicle loan. There are many reasons for this, high-interest loans, your vehicle has depreciated faster than you are paying it down, or you financed negative equity from a previous vehicle within your current vehicle loan. This becomes a problem when you are struggling to make your monthly payments on your vehicle and you can’t sell it because you owe so much more than what it is worth.
There is a way to strip off the excess amount you owe on your vehicle. In many cases, you can use a chapter 13 bankruptcy to purchase your vehicle for what it is worth, instead of what you owe, and reduce your high-interest rate. This can give you an affordable monthly payment that will enable you to keep your vehicle. Additionally, if you have other debt, you may be able to reduce it or even get rid of it altogether.
Contact me today and I can assess your situation and see if bankruptcy is right for you.