For you, having a car is not a status symbol. Like many other people in Pennsylvania, your vehicle is your only form of reliable transportation, and without it you might not be able to get to work on time or pick your children up for school. If you currently have more debt than you can handle and worry that saving the car will be impossible, you may want to consider some of the following information.
Filing for bankruptcy might not be the first thing that springs to your mind when brainstorming methods for keeping your car. However, with Chapter 13 bankruptcy, you can possibly do just that. This is because rather than immediately discharge all of your debts, Chapter 13 restructures it.
Your restructured debt will come with a repayment plan that should last anywhere from three to five years. If you still have a lot left on your auto loan, a judge may decide that it would be best to “cram down” the payments so that they fit better within the repayment plan. When a bankruptcy judge chooses to “cram down” auto payments, it means that he or she is giving you the opportunity to repay the value of your car rather than your loan balance. This can reduce your payments by several thousands of dollars.
It may not be too late to act even if the lender already repossessed your vehicle. So long as the car has not been sold yet, the lender may be required to return it if you file for Chapter 13 bankruptcy. This means that no matter where you are in your efforts for saving the car, you have options at your disposal. Time may be of the essence, though, so be sure to consider your options. Many find that speaking with experienced Pennsylvania attorneys can also be helpful.