If you are reading this article then the chances are that you are behind on your car payments as well as your other monthly obligations. The chapter 13 bankruptcy process assists with each of these problems. First, as I discussed in my last article, the amount by which you are behind on your car payments can be dealt with through your bankruptcy and the principal of your loan may be reduced. Additional good news is that while you will continue to make your car payments, sub-prime borrowers will receive a reduced interest rate known as the “till” rate. This means that their auto loan will be paid off much faster. Second, your other monthly obligations will be made much more manageable as many debts will be reduced or eliminated through the Chapter 13 plan. In other words, the process makes your situation much more manageable and allows Nebraska residents to get back on stable financial footing.
On one hand you may be feeling like you can no longer afford your car. But, on the other hand, if your loan arrearages are put into your bankruptcy payment plan, and your other bills are reduced, then your car suddenly becomes affordable. Combine the reduction of auto-loan principle which occurs in chapter 13 with the reduction in your interest rate and you will find that the bankruptcy process may essentially transform your sub-prime auto loan into a more conventional car debt. If you are a Nebraska resident struggling then you should contact an Omaha bankruptcy attorney immediately.
Nebraska residents struggling financially should not wait to consult with a chapter 13 attorney. The sooner you begin the process then the sooner the automatic stay is put in place – this means that, sooner rather than later, you can stop worrying about bill collectors and being behind on your various bills.
There are other ways in which sub-prime lending has impacted Nebraska residents. One of these is the fact that many Nebraskans are still struggling with a mortgages. My next post will deal with how homeowners can benefit from chapter 13. Contact my Omaha office today if you require the services of a bankruptcy lawyer.
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