Redwood City Bankruptcy: An Auto-Lien Stripping Reference
With the new bankruptcy law in effect, auto lien stripping has been restricted. Before, a person could “strip down” the autor lien on his vehicle, which means that the debt owed on a vehicle is reduced. Note that according to Chapter 13, a car is considered a secured debt – a debt in which creditors take as collaterals. The new law however only reduces the principal owed and the interest rate on the vehicle if the car was bought more than two and a half years (910 days to be exact) prior to the bankruptcy filing. Call Sagaria Law to schedule an appointment in Redwood City for consultation to begin a new start.