How is interest included in a BK.

Anonymous — Thu, 11 Feb 2010 18:27:21 GMT

I have an auto that I want to keep. The previous interest rate was 24%. This caused my payments for two years to account for nothing. I bought the car for $17,500 and put 2K down. I paid for 2 years before getting into (more)financial problems. When I stopped paying (the auto is in an undisclosed location) the payoff was in the $14,000 due to late charges and interest. Now about a year of not paying I checked the payoff to see where it might stand in my BK and they are saying the payoff is $16,900. WTH My question is will that $16,900 total be pulled into my chapter 13 or will it be much less.

Re: How is interest included in a BK.

Anonymous — Sun, 14 Feb 2010 14:14:12 GMT

On secured debts, such as auto and home, you generally will not get any protections in BK. BK is mostly for unsecured debts which cannot be satisfied by the sale of collateral.

If you want the car, then you will have to work out a re-affirmation agreement if BK 7, or discuss this with your atty if in 13. If you do not pay the amount owed, they can and will reposses the card. The BK isn't going to remove or reduce interest accrued.

IMO

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How is interest included in a BK.

Re: How is interest included in a BK.