Reduction of Auto Payments
If a vehicle was purchased more than 910 days before the filing of a Chapter 13, the lien can be bifurcated, or separated, into two portions — secured and unsecured. The secured portion of the lien is allowed up to the fair-market value of the property at the time. In most cases, the balance of the lien, which exceeds the fair market value of the property, is then deemed unsecured and is only paid a percentage based on a client’s income. Only the entire secured portion of the automobile debt owed must be paid in full during the life of the Chapter 13 plan (3 to 5 years).
If a vehicle was purchased within 910 days before the filing of a Chapter 13, the vehicle payments may be spread out, interest rate reduced, and the arrears paid over time.
Our experienced Detroit, Michigan bankruptcy attorney Shirley Horn can help you strip your 2nd mortgage lien, modify your rental property mortgage, or modify your vehicle payment.
Contact Our Detroit, Michigan Bankruptcy Attorney Today
We serve bankruptcy clients in Oakland County, Wayne County, and Macomb County. Our office is conveniently located in Royal Oak, with close access to Madison Heights, Sterling Heights, Lathrop Village, Huntington Woods, Southfield, Berkley, Ferndale, Oak Park, Birmingham, Farmington, and Farmington Hills.
If you, a loved one, or someone else you know needs to strip a second mortgage lien or another type of legal representation from an experienced Metro Detroit, Michigan bankruptcy attorney, call Shirley Horn today at 248-398-9900 or complete the contact form on this website to schedule a free and confidential consultation.