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Struggling with a high-interest car loan that’s breaking your budget? You’re not alone. Car loans with sky-high interest rates can drain your finances fast — but bankruptcy may offer a powerful solution.
At Sigal Law Firm, we help people reduce car loan interest rates and even lower what they owe through a process called a ‘cramdown’ in Chapter 13 bankruptcy.
How It Works:
- If your car loan is more than 910 days old, Chapter 13 may allow you to reduce the balance to the car’s current value.
- Interest rates can be reduced to as low as the current market rate (often much lower than your existing loan).
- Payments are stretched over 3 to 5 years through a single, manageable plan.
This can mean lower monthly payments and a paid-off car at the end of your plan.
Can Bankruptcy Stop Repossession?
Yes. Filing creates an automatic stay — which legally stops repossession immediately, even if the tow truck is already on the way.
