How Bankruptcy And Car Repossessions Work
If you default on your car loan, the lender can repossess your automobile. Once the lender has your car in its possession, the lender can sell it at auction to cover the remaining balance on your car loan.
The primary power of Chapter 7 and Chapter 13 bankruptcythe two types of bankruptcy most people choose betweenis that when you file for bankruptcy, the court issues an order called an “automatic stay” prohibiting most creditors from engaging in collection activities. The creditor must stop in its tracks which gives you more time to take steps to get your car back. The process you’ll take will depend on whether you file for Chapter 7 or Chapter 13.
Negotiate With Your Lender
Car lenders make most of their money through interest payments on your loan. Most lenders would rather have you keep the car and continue making payments instead of repossessing it. If you are in default, consider negotiating with your lender to work out a way for you to cure your default and keep the car. Your lender may be willing to reduce your payments, interest rate, or even principal balance because bankruptcy will discharge your obligation to pay any remaining loan balance if your car is repossessed. But keep in mind that the new loan agreement will be a reaffirmation of the debt which means you will remain personally liable on the loan despite your bankruptcy discharge.
Stop Repossession To Keep Your Car
If a creditor has threatened car repossession, take the threat seriously. Your method of transportation could be taken away and immediate action is required in order for you to keep your property.Bankruptcy is a common and effective debt relief method used to put a stop to vehicle repossession in Arizona. At theLaw Office of Phil Hineman, P.C., our repossession defense attorney in Yuma has more than 30 years of experience and has handled over 10,000 bankruptcy filings. We know how to help our clients keep their cars.
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Keep Contacting The Lender
Finally, you can continue to call the lender every 48 hours until you talk someone into picking up the vehicle. This will take a lot of persistence on your part, but eventually, it should get the lender to act. You can try to get a mailing address. Then you can mail a formal demand letter notifying them that their vehicle sits waiting to be picked up.
How Does Bankruptcy Help With A Repossession
Filing a Chapter 7 or a Chapter 13 can help with repossession in different ways.; Chapter 7 is a straight bankruptcy and is most useful if you want to walk away from the car and eliminate the debt.; A chapter 7 bankruptcy will usually eliminate a deficiency balance that is owed after a car is repossessed.
Chapter 13 bankruptcy can help you stop repossession and sometimes get a repossessed car back.; Chapter 13 is like debt consolidation and can be used to help you keep a car when you have fallen behind on the payments.;;
If your car has already been repossessed and you want to get it back, then time is of the essence.; When a car is repossessed, a bankruptcy must be filed prior to the auction of the car in order for us to force the return of the vehicle.; This usually means that we must file a bankruptcy case within 10 days of the car being repossessed.; Once a case is filed, it usually takes a day or two before the car is released back to the borrower.;;
If you need help keeping your car, call our Jackson, MS Bankruptcy Lawyers to keep you from being a victim of repossession.;;
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Ignoring Debt Is Not The Answer You Can Get A Fresh Start
It is stressful and frustrating when you do not have enough money to pay your debts. However, ignoring the debt problem is not the answer. Your debt problem will continue to grow and get worse if you do not do something to take care of it now.If you do not think you can afford to file bankruptcy, think again. You can do this! We can help!
Upsolve is a non-profit company. Our goal is to help people who cannot afford to pay a bankruptcy attorney to get the debt relief they need. We believe everyone should have the same chance to get out of debt with Chapter 7, regardless of their current financial situation.
Contact Upsolve now for more information about filing Chapter 7. You could be debt-free in about six months after you file your bankruptcy petition.
Filing Bankruptcy Really Just Prolongs The Repossession Process
You can fight your car lender’s motion for relief of automatic stay within approximately two weeks of when they file. After you file the motion, you will get a court date scheduled within about a 30 day time period. It is going to be pretty tough to get out of this one unless you can show proof that the lender never notified you or that you paid and they simply lost your payments.
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Keeping Your Vehicle With Chapter 13 Bankruptcy
Filing for Chapter 13 bankruptcy can be a good solution to avoid vehicle repossession. Once an automatic stay goes into effect, the car lender is stopped from repossessing your car until the judge confirms your debt repayment plan. Assuming the plan deals with back payments and current payments, and you make those payments going forward, the lender cannot repossess your car. If your debt repayment plan does not deal with the arrearage, or you fail to make the monthly Chapter 13 payments according to your plan, however, the lender can repossess your car. You must also make adequate protection payments during the period from the date you file for bankruptcy until the date the judge approves your plan. Usually, the adequate protection payments are equal to your car loan payments.
If your car is repossessed just before you file for bankruptcy, you may be able to get the car back, as long as you address repaying the arrearage when you submit your debt repayment plan.An experienced bankruptcy attorney can help you try to get your car back from the lender.
Our Chapter 13 Lawyers Fight Against Car Repossessions
Is your debt threatening your ability to make car payments? Then you may be able to save your car ;and stop repossession by filing Chapter 13 bankruptcy. For almost 30 years, The Sader Law Firm has assisted individuals and their families in and around Kansas City and throughout the states of Missouri and Kansas dealing with stressful financial situations. Our Chapter 13 lawyers have experience working closely with those who fear repossession.
Chapter 13 stops the repossession of your car, allows you to continue driving and, in some cases, lowers your monthly payment.
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How A Bankruptcy Attorney Can Help
A highly qualified Georgia bankruptcy attorney can stop the repossession of a car by helping their client file for bankruptcy. When a person files for bankruptcy, an automatic stay is placed on all lender repossession efforts, including auto repossession. It becomes illegal for a lender to continue the repossession process once the automatic stay is in place from a bankruptcy filing. An automatic stay also prohibits other types of creditor actions, including wage garnishment, foreclosure, and other types of repossession efforts.
Sometimes, an automatic stay is not enough to keep lenders from trying to use loopholes to continue the repossession of a vehicle. A bankruptcy attorney can ensure that the motor vehicle exemption applies to the repossessed vehicle or apply the wildcard exemption to a car to prevent its repossession during the bankruptcy process. These exemptions also prohibit the bankruptcy trustee from seizing a vehicle during bankruptcy proceedings to pay off creditors in a Chapter 7 or Chapter 13 case. If you would like to learn more about how a bankruptcy attorney can stop a car repossession, talk to our office today.
How Can Bankruptcy Stop Car Reposession
The effect of filing bankruptcy is immediate. An automatic stay goes into place, sending a message to creditors that they must cease all actions against you, including repossession,foreclosure, and any otherharassment. Filing for eitherChapter 7 or Chapter 13 can effectively stop car repossession.
However, stopping repossession is only one issue in your bankruptcy matter. You also want to make certain that your vehicle is protected from future creditor actions so you know that you will be able to keep what is yours. To do this, all of your payments must be current or you must be able to catch up by the time your bankruptcy is filed.
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Filing Bankruptcy To Stop Repossession
We have started seeing an uptick in the number of calls we are receiving from clients who need help to stop a repossession or to get a car back that has been repossessed. The COVID-19 pandemic caused a slowdown in repossession activity, but it appears that they have resumed. Our Jackson, MS office has stopped several repossessions this week. Here is an overview of how bankruptcy may help if you are facing repossession.
Chapter 13 Car Repossession Lawyer
The threat of car repossession causes nightmares for many people who have fallen behind in payments and fear they are running out of options. After all, losing your car could mean losing your ability to get to work or school, triggering an eventual financial catastrophe.
At the Sasser Law Firm, our knowledgeable attorneys frequently work with clients who are facing car repossessions and need help fast. Our board-certified bankruptcy attorneys can act quickly to review your options and take the proper legal steps to protect you.
Contact us now to schedule a free consultation. You will meet directly with one of our skilled lawyers, who can discuss how to stop car repossession, whether through bankruptcy or other means.
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Can Bankruptcy Help Stop Repossession Bankruptcy And Auto Repossession
Bankruptcy is designed to protect individuals or businesses that are unable to meet their financial obligations and provide protection to involved creditors as well. While bankruptcy is a serious procedure and should only be considered if absolutely necessary, sometimes it is the best solution for those suffering severe financial hardship.; And, for some, it may be the only solution.
One area that bankruptcy can be particularly helpful in alleviating financial hardship is by protecting property that may be in danger of repossession. This is when creditors take back goods that buyers are failing to make timely loan payments on. Some loans are secured meaning the buyer has put down some form of collateral, often the item being purchased while some are unsecured typically credit cards.; If you default on an unsecured loan, the only option creditors have when collection attempts have failed is to sue. But with a secured loan, creditors can repossess the collateral and sell it. Of course, if that doesnt provide sufficient funds to wipe out the loan, they can then sue you for the remainder of the loan balance.
Contact An Attorney To Learn More About Your Options
Unless you live in New York or another city with highly developed transportation systems, having a car is an essential life tool. Without a car many Americans cannot make the often long commutes to their jobs. Fortunately, using bankruptcy, a debtor may be able to keep their car if they need it to get to work. If you are facing a repossession or you suspect that you wont be able to continue to pay for you car loan, contact a bankruptcy attorney today to find out your bankruptcy options.
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The Law Office Of Phil Hineman Pc Will Act Fast To Help You
Our experiencedYuma repossession defense lawyer proudly serves clients, including current and former military servicemen and women, across the Phoenix metro area and all the surrounding areas across Arizona. You can trust our firm to act quickly to protect your property and get you back on the road to financial freedom.
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I highly recommend them if you need to file bankruptcy.
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Contact A Waukesha Bankruptcy Lawyer Today For Assistance
Whether you are currently in the midst of fighting to retrieve your property or you are considering filing for bankruptcy in order to keep your car and you do not know where to turn, contact the experienced bankruptcy lawyers at Burr Law Office today for assistance. Our team handles both Chapter 7 and Chapter 13 bankruptcies in Milwaukee, Waukesha, and the surrounding communities throughout southeast Wisconsin. We can discuss your case, review your situation, and provide you with the option we feel will lead to the best possible outcome. To learn more about our Waukesha bankruptcy law firm or to schedule a consultation, call us today at Call .
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Get Immediate Debt Relief Today
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Car Repossession And Chapter 13
Although Chapter 7 has the same automatic stay option when you file for bankruptcy, elements of a Chapter 13 may be different when it comes to repossession. Chapter 13 allows you to make up some of your debts through a repayment plan approved by a bankruptcy court. If you cannot make payments on your car and are in fear of it being repossessed, then Chapter 13 may be able to help.;
If you file for Chapter 13 before your car is repossessed, automatic stay may stop the repossession. Once your repayment plan is approved, your car payments may be included within the payment plan if you choose to pay off the missed payments. Filing chapter 13 may not only stop repossession but may also allow you to make lower car payments over a longer period of time for more manageable payments.;
We work with clients to help them identify if chapter 13 is the best path forward for their finances and if they qualify for chapter 13 bankruptcy. Call today to speak with our bankruptcy attorney in a free 30 minute strategy session.
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Relief From The Automatic Stay
If the automatic stay has already been issued, and no repossession process has begun at that point, what options does the lender/creditor have?
The lender, if it still wishes to proceed with a repossession, will need to request permission from the bankruptcy court to have the automatic stay lifted. This is done through a motion for relief from the automatic stay. The lender will need to show that it is the proper party in interest with a right to repossess the car. The lender also will need to prove that its interests in the vehicle are not being adequately protected because the debtor is in default or not making timely loan payments.
The debtor will have the right to oppose the motion for relief, and a hearing normally will be set. The judge can either grant or deny the motion depending on the circumstances of the individual case.
An experienced Texas bankruptcy lawyer can help you with any questions you may have about repossession and bankruptcy. Call the Law Office of Marilyn D. Garner NOW at 505-1499 for a free consultation to discuss how bankruptcy may help you.;
Can Chapter 7 Bankruptcy Stop A Car Repossession
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- Can Chapter 7 Bankruptcy Stop a Car Repossession?
Filing for Chapter 7 bankruptcy can help you get back on track when youre unable to pay your monthly bills. But can it stop a car repossession?
Yes but only temporarily. Your auto loan lender can obtain court permission to repossess your vehicle at any point. And if you arent making timely payments or your car loan is in default, this is likely to happen.
The good news is that, when you file for Chapter 7 bankruptcy, you have options to put a permanent stop to car repossession.
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