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Fritz, Attorney
Category: Bankruptcy Law
Satisfied Customers: 302
Experience:  Florida attorney with extensive experience in Chapter 7 and Chapter 13 consumer bankruptcy cases
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Im thinking about filing chapter 13. Would this help me get

Customer Question

I'm thinking about filing chapter 13. Would this help me get out from under title pawn debt and would I be able to keep my vehicle? Also, if I file a 13 would the title pawn company return my title to me?
Submitted: 4 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 4 years ago.

cfortunato :

Hi - my name is XXXXX XXXXX I'm a Bankruptcy and Consumer Protection attorney here to assist you.

cfortunato :

Filing a Bankruptcy can discharge your obligation to pay this debt, but cannot get your title returned to you unless the debt is paid.


cfortunato :

However, filing a Bankruptcy can stop the company from adding fees.

cfortunato :

Is this what you wanted to know?

cfortunato :

Are you there?

JACUSTOMER-g6uhqmd4- :

will i be able to keep my vehicle

Expert:  cfortunato replied 4 years ago.

Yes - you would be able to keep your car if you continue to make the monthly payments. A Bankruptcy will not affect this. Once the car is paid off, you will then be able to get the title back. A Bankruptcy will not affect this either.

Customer: replied 4 years ago.

i thought if i filed a 13 i could make one monthly pmt to court. isnt it called reaffirming? i cant afford the high pmts to title pawn, but i have to be able to keep my car. i dont want to file chapt 7. i want to still attempt to pay my debts.

Expert:  cfortunato replied 4 years ago.

When you file a Chapter 13, you have to pay all disposable income to the Bankruptcy court. Unfortunately, this payment is in addition to what you have to pay to the title loan company.

I am sorry I cannot give you better news, but that is how the system works.

Customer: replied 4 years ago.

if im including title pawn in chapt 13 why do i still make pmts to them? dont trustees distribute my bankruptcy pmt btw all creditors?

Expert:  cfortunato replied 4 years ago.

You may be able to have your payments reduced - if the car is worth less than the balance of the title loan.

1) What is the current market value of your car?

2) What is the balance on the title loan?

Customer: replied 4 years ago.

well the title pawn assessed value ay ariund $5300. now car needs a $3000 transmission and balance owed to title loan as of last week was $5200 and thats after ive already pd $2440. their return if pd off will be over 41%.

Expert:  Wendy-Mod replied 4 years ago.
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Expert:  Fritz replied 4 years ago.

You could include your regular monthly payments to the title pawn company in your monthly plan payments, but this alone wouldn't reduce your payments.

Another option for someone in your situation might be to try to cram down the interest rate to the "Till rate," currently at 4.25%. You would pay $5,200 at 4.25% interest over the five years of your Plan. This might save you a significant amount of money over making the regular payments; however, you would probably need an attorney to file this Motion for you.

Yet another option would be to simply surrender the car, since it looks like you might come out of the deal underwater if you were to pay off the car (due to the transmission issues). This would be a business decision, as you would then need to obtain a replacement car, which wouldn't be easy while you're in an active bankruptcy (again, you'd probably need an attorney to help you with this).

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