“WE CAN REDUCE YOUR CAR PAYMENT”
In Chapter 13 a Debtor can:
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Cram Down the Secured Creditors Claim to the value of the Collateral instead of the amount actually owed.
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Extend the payment term to 60 months (assuming a 60 month Plan is proposed)
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Pay the present value (i.e. $6,000.00) of the vehicle at a reduced interest rate, commonly referred to as “Till interest” (after a Supreme Court case where a litigant was named Till).
This can result in a tremendous savings to a Debtor, and by effectively allowing you to “refinance” your car loan you may be able to free up your cash flow and dramatically improve your financial position.
Limitations on Cram Down/Strip Down
There are limitiations that may affect you. If the collateral for a PMSI debt is a motor vehicle acquired for personal use within 910 days (approx. 2 ½ years) prior to the Chapter 13 filing, the debt can not be stripped down to the value of the vehicle.Call for more information
today.
If the collateral is not a motor vehicle, the prohibition on strip down only applies if the PMSI debt was incurred within one year prior to the bankruptcy filing.
Call John and Jeffrey Kallabat at the Bankruptcy Legal
Center Today
F or a free consultation call 1-800-657-2228.
Tax liens
Tax liens can be stripped off in reorganization proceedings
(Chapters 11 and 13) to the extent that the lien does not attach
to equity in property. Tax liens can't be avoided in Chapter
7 on the grounds that they impair exemptions; if the tax is
dischargeable in the Chapter 7, the bankruptcy court can determine
the amount of the lien that is secured at the time of the filing.
Payment of that sum entitles the debtor to the release of the
lien.
Free Consultation • Call (800) 657-2228 Toll Free •
email
To find out what the Bankruptcy
Legal Center, P.C. can do to help you stop foreclosure and
get a fresh financial start, please call or e-mail
us today for a free consultation.
"We are a debt relief agency. We help people file for
bankruptcy relief under the Bankruptcy Code."
From offices in Bingham Farms, Michigan, our law firm represents
clients in Detroit and neighboring southeast Michigan cities
including Livonia, Dearborn, Plymouth, Southfield, Pontiac,
Troy, Novi, Royal Oak, Mount Clemens, Warren, Sterling Heights,
Auburn Hills, Center Line, St. Clair Shores, Howell, Taylor,
Utica, Brighton, Redford, Farmington and Waterford; throughout
Oakland County, Wayne County, Genesse County, Macomb County,
Livingston County, Washtenaw County; Genesee County and in Michigan
statewide.
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