Thought for the Day:

Bankruptcy related insights and information

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One problem that is not particularly uncommon in bankruptcy is where during the 3-5 year repayment plan in Chapter 13, a car that is being paid through the plan is totaled. Cars are paid in the plan because often bankruptcy can reduce the debt down to the value of the car, and reduce the interest to a lower rate. Most Tampa attorneys just tell the clients they need to try to finance another car while they are in bankruptcy, which results in terrible rates for the financing. Michael Barnett, PA just recently finalized having a client being able to use the loan on the original car to replace such car with another comparable car, keeping the lower value and the lower interest rate. The large national creditor attorney indicated this was the first time he saw this practice in Florida.

It’s not enough to know the law, but the best counsel press to try new procedures that are not common in the area to benefit their clients.