How To Stop Repossession With Bankruptcy
No one ever has plans to get behind on their car payments, but circumstances can change. All it takes is an unexpected illness or job loss, and suddenly you are no longer able to pay your car note on time. When this happens, filing bankruptcy is often your best – and usually your only – means to stop repossession.
Keeping your car can be extremely important. You may need it to hold on to your job, to get to doctors’ appointments or to take your children to school. At my law firm, Danny Kallabat, P.C., I understand this. I can help you keep your car, or at least delay repossession as long as possible.
If you are behind on your car payments, the best thing to do is consult with me immediately. There are many things I can do to help you protect your property – including your car – from creditors. I have helped thousands of individuals keep their automobiles.
Upon filing for bankruptcy in federal court, an “automatic stay” goes into effect. Creditors must stop contacting you directly. This stay stops all creditors, including your car loan company, from pursuing any further collection actions against you.
Also, if you owe more than the car is worth, the bankruptcy judge might even lower the amount remaining on your auto loan and reduce what you still owe down to just the actual replacement value of your car.
Chapter 7 Bankruptcy And Repossession
Chapter 7 bankruptcy does not permanently stop car repossession, but it can temporarily delay a lender from repossessing your automobile. This can give you valuable extra time to try and get caught up on your car payments, or at least find other transportation. Plus, filing Chapter 7 bankruptcy can get rid of other debts such as credit cards and medical bills or judgments, which often frees up enough money for you to start making your car payments again.
Do Not Wait Any Longer – Call Today
Danny Kallabat, P.C., is a debt relief agency. I help people file for bankruptcy relief under the Bankruptcy Code.