You Can Reduce Your High Auto Interest Rate In Oklahoma.
Video Transcribed: Edward Kelley here with 888 Debt Line, answering your bankruptcy questions. Is there anything I can do about my terrible interest rate on my auto in my chapter seven bankruptcy. Now we’ve talked before about a chapter 13, and the extended powers you get there, including the ability to cram down your loan amount to the value of your vehicle, and render the rest unsecured. So potentially paying much less for your vehicle in total. Can’t do that in the seven, however, you can still reduce your interest rate.
There’s a case out there, Till, which set up this power and leads a limited bit of power in a chapter seven bankruptcy. So again, you cannot and there’s still this nine, 10 rule, which I’ll talk about, which may have an effect primarily in thirteens. But in a chapter seven, say you’ve got a 20% interest rate, although you can do nothing about the amount that you owe, you can reduce that interest rate.
So we talked last time about should I reaffirm my car loan, and yes, if you want to keep the vehicle. However, be sure you remind your attorney or if you’re doing it yourself, be sure that you make an attempt to reduce that interest rate.
So, again, if you bought the car three days before bankruptcy, file and try to reduce your interest rates substantially. Probably not going to be successful. However, if it’s a legitimate loan entered into not an anticipation of bankruptcy and the interest rate is above what in bankruptcy they call the Till Rate, a little bit above prime, you can usually negotiate with the creditor if you want an agreement. Just don’t reduce it to the absolute lowest and they’ll know they’re getting more than they might and they’ll probably agree.
In any case, it’s usually a good idea, this is more, I guess, advice for an attorney to run that by the trustee. But if you want a fresh start and you’ve got to keep that vehicle, and one of the problems is that the interest rate is so high, definitely take a look at what it is if you’re going to reaffirm the vehicle. And just have your attorney contact the creditor and talk about reducing it.
Now, if they don’t agree, you may have to fight about it, but potentially depending on how much you owe on your vehicle, you can save thousands and thousands of dollars in the long run. I’ve just found that a lot of people don’t realize that you have that power even in a chapter seven.
So keep that in mind and I will see you soon. Again, anytime you have questions, contact me at firstname.lastname@example.org.