18 wheeler Chapter 13 Bankruptcy Repossession
18 wheeler Chapter 13 Bankruptcy Repossession can be prevented by filing a chapter 13 bankruptcy. If you qualify you may be able to “cramdown” in a Chapter 13 bankruptcy the amount owed to the value of the 18 wheeler and also reduced the intererest rate on the loan. The chapter 13 bankruptcy allows you to reduce the principal balance of a debt to the value of the property it is secured by. By taking advantage of a Chapter 13 cramdown, you may be able to save your 18 Wheeler from repossession. Cramming down your loans through a Chapter 13 bankruptcy may also allow you to reduce your interest rate and stretch your payments out over a longer term in order to lower your monthly obligations. The interest rate paid to secured creditors through your plan is determined by the bankruptcy court and will usually be lower than your note rate. In addition, since Chapter 13 plans last three to five years, you may be able to stretch out the payment period for the crammed down loan, resulting in lower monthly payments than if you were paying the loan outside the bankruptcy.
Restrictions on Cramdowns for 18 Wheelers
The bankruptcy code has placed certain restrictions on when you can use a cramdown to prevent people from cramming down their recent purchases. These restrictions depend on what kind of property is securing the debt you wish to cram down. The One-Year Rule means you must have owned the vechiles, if a purchase money fiance for at least a year before you can cram it. If you had refianced the loan, then you can cram it right away. You chapter 13 bankrutpcy plan will require that loans that are crammed down be paid off within the three to five year length of your Chapter 13 plan.
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Call us today at (713) 974-1151 to schedule a no-obligation consultation or feel free to email us at [email protected].
We provide legal services in the greater Houston metro area including the cities of Houston, Katy, Sugarland, Pearland, Friendswood, Clear Lake and Galveston. We also handle cases from The Woodlands, Spring and Tomball and cases in Baytown and Channelview.
We handle bankruptcy cases in all of these counties: Brazoria, Chambers, Galveston, Matagorda, Austin, Brazos, Colorado, Fayette, Fort Bend, Grimes, Harris, Madison, Montgomery, San Jacinto, Walker, Waller, Wharton
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