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How Bankruptcy Lawyers Stop or Delay Repossession

by | May 31, 2018 | Firm News

How Southfield Bankruptcy Lawyers
Can Stop or Delay Repossession –

Getting behind on your car payments is not something you ever planned to do! But sometimes circumstances are beyond your control. A serious illness, the death of a family member, or an unplanned job loss can suddenly mean you can no longer pay your car note on time.

When this happens, our experienced Southfield Bankruptcy Lawyers can either delay or stop automobile repossession. We know that keeping your car may be important to keep your job, or to get to and from medical appointments – and we want to help.

Southfield Bankruptcy Lawyers
Stop Car Repossession with Chapter 13

If your bankruptcy lawyer files Chapter 13 for you, you usually CAN permanently keep your car. Even when you are behind on car notes, Chapter 13 lets you set up a repayment plan until you get caught up on your missed payments. As long as you keep up with the scheduled payment plan you keep your car.

If you owe more on the car loan than the car is worth (i.e. you are “upside down”), the bankruptcy court might also reduce the amount that is remaining on your car loan down to the actual present replacement value of the auto. This can substantially reduce the amount you owe on your car note, which also can lower your car note payments by quite a bit!

Southfield Bankruptcy Lawyers
Delay Car Repossession with Chapter 7

Filing Chapter 7 bankruptcy does not permanently stop car repossession, but Chapter 7 can temporarily delay the auto lender from repossessing your car. And this can often give you sufficient additional time to eventually get caught up on your car payments.

Plus, having a bankruptcy lawyer file Chapter 7 CAN get rid of many of your other debts (e.g., credit cards, hospital bills, judgments, etc.) This can then leave you with enough money every month so you can start making your car payments on time again.

When your bankruptcy lawyer files Chapter 7, the “automatic stay” immediately goes into effect. The “stay” stops your creditors from taking ANY collection action against you without getting the judge’s approval.

Keep in mind, though, that a Chapter 7 Bankruptcy takes only a few months – so once your case is closed, there is no longer a “stay” and the lender is free to repossess the car at that point if you do not keep up with your car note payments.

Also, under some circumstances the car note lender may try to ask the judge for “permission” to repossess the car BEFORE your Chapter 7 is closed. Many bankruptcy judges will allow the lender to repossess before the case is over – unless you can show that you are making current payments on time as well as diligently trying to catch up on your back payments.

Worried about repossession? Call our Southfield bankruptcy lawyers!

The best chance you have at stopping an automobile repossession is to consult with an experienced bankruptcy lawyer as soon as possible. Our skilled Southfield bankruptcy lawyers have helped thousands of individuals in the Southfield area get a fresh start AND keep their automobiles.

Southfield’s Best Bankruptcy Lawyers

If you or a loved one is faced with debt – call our experienced Southfield bankruptcy lawyers today for a free consultation.

Our skilled and affordable bankruptcy lawyers have helped hundreds of individuals in the Southfield area, and across the greater Wayne County & Oakland County area, reduce or wipe out their debt by filing Chapter 7 or Chapter 13 Bankruptcy.

Call our experienced Southfield bankruptcy lawyers today for a FREE CONSULTATION to see how filing bankruptcy can help you!

Free Southfield Bankruptcy Lawyer Consultation: 248-357-3000