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 se