Figuring the Value of Your Bankruptcy Car Loan
August 17th, 2008Most people have a car loan when they file bankruptcy, so the old and new bankruptcy laws address loans on vehicles. Unfortunately, the new laws are tougher on debtors in terms of how much you must repay on your outstanding loan. This forces the debtor to pay the full amount for loans that even have excessive interest rates.
Under the old bankruptcy laws, debtors only had to repay the value of the vehicle they owned. That meant you only had to pay back the current resale value and not the retail value of the vehicle. Under the new law, if you have had a loan placed on the car within the last 3 years, you will have to pay the full amount of the loan.
