Can I strip down my car loan in bankruptcy?
Yes, depending on the circumstances. An automobile loan may be reduced to the value of the vehicle. Your ability to strip down your automobile loan depends on: a) the value of the vehicle; b) the outstanding amount owed on the vehicle; c) who the obligors are; d) how long you have had the loan; and e) the purpose for purchasing the vehicle and what is it primarily used for. Along with a reduction of the loan, the interest rate may also be reduced along with an adjustment of the repayment period. For further clarification about filing for bankruptcy, please feel free to contact us and one of our bankruptcy attorneys in Miami will be happy to help you.
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