Cramming Down the Value of Your Car in a St. Louis Bankruptcy

One of the biggest advantages in filing a St. Louis Chapter 13 bankruptcy is the potential to reduce (or ‘cram down’) the amount you owe on a car, truck, motorcycle, or mobile home to the actual fair market value of the asset.  In many cases, this can shrink the amount of secured debt you are currently handling by as much as half.


The way in which this is accomplished is by determining whether you own a ‘910 Asset’.  A 910 asset is personal property that you have purchased, and the creditor has taken out a secured loan against it (like when you buy a car at the dealership).  If the asset was purchased 910 days or more ago, then the amount owed can be crammed down to the fair market value in a St. Louis bankruptcy. 

For example, let’s say you purchased a vehicle in 2008, and the current balance owed on the vehicle is $15,000.  But the actual fair market value of your particular car is $7,000 (based on either a recent appraisal or Kelly’s Blue Book).  Because the automobile was purchased more than 910 days ago, it is possible for a St. Louis bankruptcy lawyer to cram down the amount that you pay back to the creditor from the current balance of $15,000 to the FMV of $7,000.  In such a situation, you would pay back less than half of the original amount, and those payments would be spread out over a period of three to five years in the Missouri Chapter 13 bankruptcy.

The St. Louis bankruptcy attorneys at The Law Office of Jennifer Alter-Rieken have crammed down hundreds of debts owed on cars, trucks, motorcycles, and mobile homes.  In the process, we have made life much more manageable for individuals and families who are struggling financially.  Through the filing of a St. Louis Chapter 13, this kind of repayment plan can be had.  Our staff is prepared to put you in the best possible position to make this happen, and get you the fresh start / clean slate that you deserve.

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