bankruptcy and cars

[kissrawks]

I am filing ch 7 soon and went to a lawyer and he said he can get my auto loan changed so my car payment is about $100 less. how can he accomplish this and if it negotiating with the financing company, can i do that myself? I can't afford to stay with a lawyer and will have to file myself.

Thanks

[HHM]

he can do that by having you file a chapter 13 bankruptcy. It has nothing to do with negotiating, he is suggesting what is called a cram-down in a chapter 13, whereby, instead of paying what you owe (the contract rate), you only pay off what the car is worth.

[klux]

My husband and I negoiated a reaffirmation with the bank that holds are auto loan. They reduced payment by $150.00/month and we only had to pay market value, not what was owed. I've been told most banks won't do this, but the one we used was more than willing to when I told them that they could do this or take the car back. After all, if they took it back it's all they would've gotten anyways. In their eyes it saved them more money.