How Sub-Prime Borrowers in Nebraska Can Benefit From the Chapter 13 Bankruptcy Process

CNBC recently reported that an increasing number of Americans are falling behind on their car loans. Interestingly, a large number of those behinds were those who are considered “sub-prime” borrowers with below average credit scores. Nebraska residents in this situation tend to have other financial problems as well. This is the first post in a blog series on how the chapter 13 bankruptcy process can assist those in Omaha, and anyone else throughout our state, in dealing with excessive debt.

There are a number of ways in which sub-prime borrowers can achieve a financial fresh start through a Nebraska bankruptcy

Sub-prime lending was one of the key factors that led to the 2008 financial crisis. According to CNBC, lenders have again increased their willingness to lend to those with less than pristine credit. This has led to many people, some of whom reside in Nebraska, having car loans, mortgages, and other debts that they now may be struggling to afford. The chapter 13 process can help one obtain a better financial situation with these debts while sometimes allowing them to retain property through a bankruptcy. Topics I will be covering in this series include:

• How a chapter 13 bankruptcy helps those with sub-prime auto loans
• How those with sub-prime mortgages can benefit from a chapter 13 bankruptcy
• How one can reduce, eliminate, or make debts affordable through chapter 13

Many are surprised to learn that that they will not necessarily be required to forfeit all of their property and that one’s credit can often be restored after the bankruptcy process. This can often be done while retaining the property which currently carries a high interest rate loan.

Consulting with an Omaha attorney can help Nebraska residents discover that the bankruptcy process is affordable

Many people with sub-par credit, who are making large loan payments, wish to file for bankruptcy but feel they cannot afford an attorney. A common solution to this problem is to not make the payments on a car or credit cards for a month and use that money, instead, to retain a bankruptcy lawyer. Those debts will be dealt with, and new payment schedules adopted, through the chapter 13 process. In other words, retaining an attorney can often lead to a fresh start while allowing one to keep their property.

Our Omaha, Nebraska attorneys have helped many residents of our state to begin the chapter 13 process and get high interest rate debts under control. I will discuss how this occurs, with each of the types of debt listed above, throughout this series.