Our expert bankruptcy attorneys want to let you know, with a free consultation, that bankruptcy can help stop repossession of your car! You use your vehicle to commute to work, for work, to drive your children to school and the doctor’s office. The thought that it may be taken from you and repossessed can feel overwhelming—because it is. We know how to help–we stop repossession!
Many people that contemplate filing for bankruptcy don’t realize that the Bankruptcy Code has provisions that can help people that are behind on their car payments keep their car! Our bankruptcy attorneys are experts at finding ways to save your vehicle through bankruptcy and stop repossession. We will do all we can to save your car–talk to one of our attorneys for a free consultation.
How Can Bankruptcy Stop Repossession?
The Automatic Stay: When a person files for bankruptcy, one of the first things that begins is the “Automatic Stay” period. During this period, bill collectors are not allowed to file suit or repossess your vehicle. The Automatic Stay period is specifically designed to help stop repossession of vehicles.
Exemptions: Chapter 7 Bankruptcy has various bankruptcy “exemptions” that are specifically designed to help you save your possessions, such as your vehicle. Exemptions are categories that vary depending on what state a person lives in, that allows them to keep certain possessions such as houses, cars, wages and other personal property provided it is worth certain amounts of money. Expert bankruptcy attorneys, as found on this site, will apply all possible exemptions, including “wild card” exemptions, to help you stop repossession and help you save your vehicle!
One step most people contemplating bankruptcy to stop repossession fail to complete prior to their bankruptcy consultation is getting a copy of their most recent credit score and reports. Bankruptcy lawyers need a recent copy of your credit score and reports so that they can properly evaluate your potential need for bankruptcy and how your credit scores are being affected and putting your vehicle at risk of repossession! This is a necessary step that you must complete if you want meaningful advice on what to do and how to save your car.
What About If I Have A Car Loan?
People that do not own their car outright and have to still make payments on the vehicle may be able to keep their cars because of a few different options:
Reaffirmation Agreements: When you are making payments on a vehicle and you want to keep it, the bank that you have your loan through can ask you to enter into a new contract to continue paying the car loan. The bank promises that as long as you continue to make car payments, they will not repossess your vehicle. Keep in mind that when you “reaffirm” a debt, such as a car loan, that debt is not discharged in bankruptcy. Rather, it follows you after the bankruptcy, and should you fail to make payments eventually, the car can be repossessed. But using bankruptcy to erase debt will allow you to afford your car payments and stop repossession.
Redemption: During a Chapter 7 bankruptcy, a debtor has the right to “redeem” their car from the bank by making a one-time payment to pay the value of the vehicle off in full and discharge the remainder of the debt. How does this work? Getting a free evaluation from one of our attorneys will show you how—but here is a basic example: Say you owe $20,000 on your car loan, but the value of the car is only $10,000. If you make a $10,000 payment to the bank, you can have the remaining $10,000 debt discharged through your Chapter 7 bankruptcy! We’ll save you thousands of dollars—contact us right now!
Surrender of the Vehicle: Unfortunately for some people, it is impossible to continue making payments on the vehicle and you must give it back to the bank. This process is called “surrender” and it means exactly what you think it does—give the car back to the lender.
Can I Stop Repossession if I Lease My Vehicle?
Leasing a vehicle is one of the simplest ways to keep your vehicle during bankruptcy. As long as you continue to make the monthly lease payments on time, you can keep the vehicle! If the lease payment is too high for you, you can always choose to surrender the vehicle as well.
Speak to one of our attorneys and our attorneys will work with you to stop repossession and save your car! Asserting your right as an American by filing for Chapter 7 Bankruptcy can help stop repossession and save your car! Our experts will put you at ease when it comes to filing for bankruptcy and we will help you save your car so you can continue driving to work and taking care of your family. Don’t waste any more time—contact us today for a free evaluation and stop repossession! Get the bankruptcy help and advice you need today and keep your vehicle.