JRothstein Law Group PLLC

JRothstein Law Group PLLC JRothstein Law Group PLLC is located in DeWitt, MI and practices in the Tri-County Lansing area. We

11/26/2022

đź’źđź’źđź’ź

04/15/2017

Can I Lower My Car Payment in Bankruptcy?

If you’re having trouble paying your monthly bills—especially that steep car loan— you might be wondering if filing for bankruptcy will lower your existing car payment. It depends on which type of bankruptcy you file, but bankruptcy could potentially lower your car payment.

Here are basic descriptions of the two types of bankruptcy that you can file:

A Chapter 7 bankruptcy, or “liquidation” bankruptcy, will discharge most of your unsecured debt. A trustee will attempt to sell any significant property to pay your creditors.

A Chapter 13 bankruptcy, or “wage earners” bankruptcy, will reorganize your debts so that you can repay some or all of your debt over a set period of time.

When you file for Chapter 7, your car loan will not be discharged because it is not an unsecured debt, but rather a secured debt. In this type of bankruptcy filing, your secured creditors—which include the holders of your car loan— will have you sign a reaffirmation agreement. This is an agreement between the creditor and the debtor that waives the discharge of debt in a pending bankruptcy proceeding. You must sign this agreement in order to retain your vehicle. You will be required to maintain your monthly payments. If you default, the creditor has the right to repossess your car.

There is one possibility through Chapter 7 that could decrease what you owe on your car, and that is you may take advantage of your right to redeem your car. When you redeem your vehicle, you pay an amount equal to its replacement value. This is often much lower than the amount that remains on your loan. The hitch is that you will need to pay this figure in a lump sum, and few people filing for bankruptcy have the cash to do so.

Your best chance of reducing your car payment is through Chapter 13 bankruptcy. In Chapter 13, your car loan will become part of your bankruptcy plan which will be paid by your trustee. Your car payment could remain the same, but you can reduce a high interest rate (typically down to ~4%), and you can even reduce the principal balance of a car loan if (a) the value of the vehicle is less than the balance owed and (b) the vehicle was purchased at least 910 days prior to filing your Chapter 13. This is known as a “cram down.” In a cram down, if the balance of your loan is more than your car is worth, then you can pay back the balance based on the current value rather than the contracted loan balance. This could decrease the amount you owe considerably and thereby lower your payment.

There are some variables to consider, but filing for bankruptcy often a good option if you’re in need of lowering your monthly car payment.

Bankruptcy Law Network, LLC, 6502 S. 6th Street, Klamath Falls, OR 97603, USA

01/07/2017

Fascinating blog post from Bankruptcy Law Network:

Is Your Car Loan Underwater – What Are Your Options?

underwater car loanWould you be surprised to discover that your car is underwater? Not underwater in the sense of being wet, but in a financial sense. You are financially underwater with your loan if the fair market value of your vehicle is substantially less than the debt you owe.

According to Edmunds.com, quite a lot of folks are significantly underwater with their loans. In 2016 nearly one-third of all vehicles offered for trade ins at dealerships are worth less than the debt encumbering those vehicles. By comparison, the underwater percentage was less than 14% in 2009.
Why Do Car Loans Get Upside Down and What Does it Mean?

There are several reasons why you may get upside down with your loan. First, the average term of car loans is getting longer – Experian reports that the average loan now lasts between 68 and 72 months. Further, the average loan now amounts to around $30,000.

Second, vehicles are what as known as depreciating assets – they lose value every year and with every mile driven.

When you do the math, you won’t break even on a $30,000 loan financed over 72 months at a 4% until year 3 or 4 of the loan. As the interest rate goes up, it may be year 5 or even year 6 before your loan balance falls below the vehicle value.

If you trade in your underwater vehicle for a replacement (or if you have to replace a damaged or destroyed car) when the loan balance exceeds the fair market value, the replacement lender will reduce the unpaid balance by the wholesale value of the original car and “roll in” the remaining balance into a new loan.

You may end up with Mercedes sized payments but a modest Chevrolet in your driveway.
What Can You Do if You are Upside Down in Your Car Loan?

If you find yourself owing substantially more to your car lender than your vehicle is worth, you do have options. First, you need to look at this problem in financial terms. For example, if you owe $30,000 on a vehicle worth only $15,000 today, you effectively have $15,000 unsecured debt, just as if you had a $15,000 unsecured credit card debt.

If you add up all of your unsecured liabilities and you owe $20,000 or $30,000, it would not be unwise to look at bankruptcy options to get yourself back on track. Chapter 7, if you qualify, would allow you to just walk away from your upside down car loan and start over.

Chapter 13 can allow you to restructure your out of control car loan, along with all of your other debts. If your car loan is more than 910 days old (2 ½ years), you have even more options in that you can “cram down” your outstanding debt to equal the fair market value of your vehicle.
Underwater Car Loans May Represent a New Financial Bubble

Financial analysts are reporting an increase in the number of vehicle loan delinquencies. I expect this trend to increase in 2017 as interest rates begin to rise. Higher interest rates on new loans will leave struggling families with less disposable income.

If your car or truck loan is eating up an large chunk of your take home pay then seek legal advice from a bankruptcy lawyer before you end up in default status or with your vehicle repossessed. Bankruptcy lawyers are always able to offer more options before a crisis starts than if you are staring down an emergency deadline.

06/13/2016

Last call in the Jimmy Buffet tickets

05/29/2016

several new blog postings up .net
We also have two tickets available for the Jimmy Buffett concert at DTE on June 18, 2016
Vip tickets excellant seats
section LTC5 row v seats 9 and 10
517-575-8039
[email protected]

04/19/2016

check out our new blog posting on divorce and custody call today for a free consultation
JRothstein Law Group 517-575-8039

04/10/2016

A medical Durable Power of attorney (MDPOA)is valid not only for life and death decisions but also whenever you are not capable of signing permission for surgery. Call today for our firm will prepare for you a free MDPOA
JRothstein Law Group 517-575-8039

04/08/2016

copied from Ronald Fabians post shared on my personal page

Michigan and Mississippi are now the only two states that criminalize unmarried cohabitation. Florida just repealed its law.

MCL 750.335 Lewd and lascivious cohabitation and gross lewdness.

Any man or woman, not being married to each other, who lewdly and lasciviously associates and cohabits together, and any man or woman, married or unmarried, who is guilty of open and gross lewdness and lascivious behavior, is guilty of a misdemeanor punishable by imprisonment for not more than 1 year, or a fine of not more than $1,000.00. No prosecution shall be commenced under this section after 1 year from the time of committing the offense.

Do you owe any fines in Ingham County? You may be eligible for amnesty.
04/06/2016

Do you owe any fines in Ingham County? You may be eligible for amnesty.

03/31/2016

court says
on March 29, 2016 at 4:40 PM, updated March 30, 2016 at 12:23 PM
Michigan Supreme Court

Tow ball, bike rack - if your plate's blocked, cops can stop, high court says
Fired Saginaw nurse wins $1.2 million case argued at Supreme Court
Hear Michigan Supreme Court justices discuss Saginaw nurse firing case
'Towing ball' traffic stop case heard by Michigan Supreme Court
Michigan Supreme Court hears case of fired nurse who won $1 million lawsuit

All Stories

LANSING, MI – If a towing ball on your vehicle – or a bike rack or a trailer hitch or anything else – obstructs a police officer's view of your license plate, the cop can pull you over, the Michigan Supreme Court has ruled.

In precedent-setting opinion in a Muskegon County case, the high court unanimously overturned a Michigan Court of Appeals ruling that suppressed evidence seized from a truck pulled over after police couldn't read all of its license because of a tow ball in the way.

The supreme court reinstated evidence in the felony drug and gun case against Charles Almando-Maurice Dunbar. The 7-0 opinion, written by Justice Stephen J. Markman, was filed Tuesday, March 29.

Markman concluded that the Michigan Vehicle Code requires vehicle owners to attach their registration plate in a place where it can be seen without obstruction.

It's not enough, the court concluded, to keep the plate itself legible and free of material that obscures it. That reversed the opinion of the appeals court, whose majority had concluded that Dunbar shouldn't have been pulled over because his plate was clean and legible.

The high court's decision reinstated the original ruling of the trial judge, Muskegon County 14th Circuit Judge Timothy G. Hicks, allowing evidence seized after the stop to be used at Dunbar's trial.

Muskegon County sheriff's deputies pulled over Charles Almando-Maurice Dunbar's truck about 1 a.m. Oct. 12, 2012, on Hackley Avenue in Muskegon Heights. Once he was stopped, deputies said they smelled ma*****na, leading to a search that uncovered drugs and a gun.

As a result of the traffic stop and subsequent search, Dunbar was charged with possession of between 50 and 450 grams of co***ne, carrying a concealed weapon, second-offense ma*****na possession and felony firearm, as a fourth-time habitual offender.

In the initial court case, DunLL YOULEGSLLYA OVER motion to suppress the evidence deputies seized, arguing that the traffic stop violated his client's Fourth Amendment rights.

Hicks dismissed the attorney's motion. But the Michigan Court of Appeals in September 2014 overturned the lower court's ruling in a 2-1 decision.

The appellate court's published opinion, which if upheld would have set precedent for future cases, essentially said police could not pull over a vehicle merely because a towing ball obstructs their view of a license plate.

The new supreme court ruling upholds traditional police practice.

According to the appeals-court decision, now overturned, Dunbar was violating no traffic laws before deputies pulled him over. The officers stopped him because a towing ball attached to the back of the truck -- but not actually touching the license plate -- kept them from being able to make out one of the numbers on the plate. It's illegal to drive with a partially obscured license plate.

At the time of the September 2014 ruling, attorneys for both sides said it would affect police conduct statewide unless it was overturned or the wording of the law was changed.

Oakes at that time called the now-reversed ruling a victory against police "profiling" of drivers like Dunbar, who is African-American, leading to unwarranted traffic stops in hopes of finding evidence of drugs.

Senior Assistant Prosecutor Charles Justian at the time called the 2-1 ruling legally flawed. He said the majority opinion incorrectly failed to address the issue of whether excluding the evidence was necessary to deter police misconduct.

In the end, the state supreme court didn't consider either issue. They restricted attorneys' arguments to the issue of whether Dunbar's license plate violated traffic law "where it was obstructing by a towing ball."

In view of the statewide impact of the issue, the high court had invited the Prosecuting Attorneys Association of Michigan and the Criminal Defense Attorneys of Michigan to file briefs in the case.

READ THE OPINION HERE.

John S. Hausman is a reporter for MLive. Email him at [email protected] and follow him on Twitter.

Address

Dewitt, MI
48820

Opening Hours

Monday 9am - 5pm
Tuesday 9am - 5pm
Wednesday 9am - 5pm
Thursday 9am - 5pm
Friday 9am - 5pm

Telephone

+15175758039

Alerts

Be the first to know and let us send you an email when JRothstein Law Group PLLC posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Contact The Practice

Send a message to JRothstein Law Group PLLC:

Share