I'm having more and more people come in to my law office in Houston from such places as Cypress, Spring, Sugar Land and Missouri City, Texas, that have taken out "title loans" on their cars or trucks, and are now facing repossession.
The interest rates on these loans are really high, in many cases over 300%. It's no wonder that people get in trouble with them, become delinquent, and then have to face losing their only source of transportation to work, school, the grocery store, the doctor, and other necessary errands.
If you are employed or have another regular source of income and you qualify, it's possible to file a Chapter 13 bankruptcy and stop the repossession. Then you pay a monthly payment (usually payroll-deducted out of each of your paychecks) to a Chapter 13 trustee, who pays your creditors for you.
And no more 300% interest rate! The Bankruptcy Court regulates the interest rates paid on these types of loans while you are in a bankruptcy case, and we currently pay no more than 5.25%. So many of our clients that have title loans can pay an affordable monthly payment for as little as 3 years and get their title back.
And at the same time, the rest of your debts can also be dealt with by paying little or nothing through the plan, with the balance due "discharged" or canceled when you complete the plan payments (depending on your income and other factors).
To know exactly how Chapter 13 can help you stop the title loan company from repossessing your vehicle, and how it would work in your case, call our office for your free consultation, or request more information.