Every once in a while, I have a potential client ask me if they are eligible for bankruptcy since they may only have a mortgage or a car loan. Or they might be facing a lawsuit on their only major debt. Is there a minimum amount of debt needed to file for bankruptcy? The answer is no, there is no minimum.
A chapter 13 bankruptcy can stop a foreclosure of a home or a repossession of a vehicle. You can catch up the amount that is past due over the course of a three- to five-year chapter 13 plan. Sometimes with vehicles that you have been making payments on for two-and-a-half years, you are able to pay only the value of the vehicle rather than the full amount of the loan, with reduced interest to boot! This can be a great way to save money on a vehicle that might seem to be hopelessly underwater (worth less than what is owed).
Don’t hesitate to get some advice – call us today at 912-275-7018 to set up a free initial consultation.
November 20, 2021