Bankruptcy Attorney | Weik Law Office | Serving Raleigh, Durham, Cary, Chapel Hill, and Wake Forest, North Carolina

When an individual files for Chapter 13, there is a provision in the Bankruptcy Code that provides that the filing of a Chapter 13 not only stops any action to collect a debt from the debtor, but also stops any action to collect a debt from a co-signor who is listed on the petition. In order to fully protect the co-signor under the Chapter 13, the debt must be paid in full at the contract rate of interest. The payments; however, can often be extended and therefore the monthly payment to the creditor can be decreased.

If you qualify for a Chapter 13, we can often get a repossessed vehicle back from the creditor.  You will need to pay the cost of the repossession and provide proof of insurance.  For example, if you currently owe $9,000 on your car and you purchased the car three years ago, your car may only be worth $6,000.  A Chapter 13 would allow you to pay the value of the car, or $6,000 over a 3-year period.  You could possibly reduce your car payment from $333 per month to only $166 per month and drop the interest from 21% to only 12%.