Here in North Carolina, a car is typically essential transportation. Owning a car can be vital to continued employment. Lenders and car lots know this, and are very willing to loan money to buy a car. The catch, however, is a high, sometimes very high, interest rate. A high interest rate strains a household budget, and can prolong the debt burden beyond the serviceable life of the car. Bankruptcy offers tools for consumers to get out from the burden of crushing auto loan interest.
The Till Rate, or Trustee's rate, is a presumptive interest rate used in chapter 13 cases paying off secured debts over the life of the chapter 13 plan. The rate takes its name from the Supreme Court case Till v. SCS Credit Corp., which affirmed the notion that interest in chapter 13 was combination of a risk factor and the prime rate. Currently, as of 2014, the Till Rate in Raleigh NC is 5.25%.