If you have a car that was purchased more than 910 days before you file, Chapter 13 might be a better option for you as opposed to Chapter 7 In a Chapter 13, if your car was purchased more than 910 days before filing, section 506A valuation will apply to your plan. This means that you may have to pay back only the value of the car and not the amount owed. For people who are upside down on their car loans, this is a huge benefit. If you would like to check out the value of your car, I recommend that you go to www.nada.com.
In addition to wiping out some of the amount owed on your vehicle, the interest rate paid on car notes in most Chapter 13 plans is currently between six and seven percent. Most buy here pay here lots in Northwest Georgia charge between 25 and 30 percent annual interest. Chapter 13 can you a huge savings in interest payments.
For people who are behind on car payments, Chapter 13 allows to pay the entire car note through the plan and keep your car. Chapter 13 is a great tool for stopping car repossessions.
Chapter 13 also allows a person to take any missed mortgage payments on a house and pay them out over the course of the plan. Most Chapter 13 plans run from three to five years. Chapter 13 is a great tool for stopping foreclosures.
Call me today for your free consultation at 706-295-0030 and lets see if Chapter 13 can help you.
