Repossession Prevention Lawyer
Are you several months behind on car payments? Are your lenders calling you and threatening to repossess your car, truck or other vehicles? Unfortunately, severe financial strain can mean repossession is a very real possibility. Without your car, you may have difficulty getting to work, which can only add further strain to your already difficult financial situation. By filing for bankruptcy, you may be able to avoid automobile repossession and stop harassing calls from creditors. It can allow you to obtain financial relief.
What Bankruptcy Can Do
Some people hesitate to file bankruptcy, but if you’re in danger of losing your car to repossession or your home to foreclosure because you can’t pay the bills, bankruptcy can be a way for you to get back on your feet. It’s a way for you to make your bills affordable again while protecting some of your assets. As soon as you file bankruptcy, your creditors will have to stop any calls and collection action – including repossession. During the bankruptcy, you will work out an agreement to possibly allow you to keep some of your assets – such as your home or car – while also getting some relief from bills.
There are two types of bankruptcy to potentially help you if you worry your car will be taken away. Chapter 7 bankruptcy dismisses many types of unsecured loans, such as credit cards. If you can bring your car payments up to date under Chapter 7 bankruptcy, you may be able to save your vehicle. If your income is too high to qualify you for Chapter 7, Chapter 13 bankruptcy is another option. This form of bankruptcy allows you to rearrange and reorganize what you owe, so you can afford your payments. You will then have three to five years under the plan to repay what you owe on the car loan so you can keep your car.
Bankruptcy will temporarily lower your credit score, but it will protect you from the credit score drop you would experience if your car was repossessed. In addition, you may be able to keep your vehicle and you can use bankruptcy to gain control over your finances again.
At Rahaim & Saints our attorneys will help guide you through the entire bankruptcy process. We have more than 10 years of experience representing individuals and couples in bankruptcy matters. We will help you decide whether filing for Chapter 7 bankruptcy (debt liquidation) or Chapter 13 bankruptcy (debt reorganization) is a viable option.
The Effects of Car Repossession
Automobile repossession means more than just losing your car. It also means relinquishing your ability to drive to work, drive your children to school, doctor’s appointments and other necessary destinations. You will also lose the feeling of independence many people get from being behind the wheel of your car. In addition, there may be emotional repercussions to having a car repossessed. Having your car taken away is often public and can be embarrassing if it happens in front of your neighbors or employer. Some companies even charge you additional fees for the repossession. Your credit suffers if your car is repossessed, and it can take you time to rebuild your credit score — making it difficult for you to afford a replacement vehicle.
For all of these reasons, bankruptcy or legal advice may make sense. Don’t wait until your car is gone. Contact Rahaim & Saints today. Rahaim & Saints has helped hundreds of clients keep their car and achieve financial freedom via bankruptcy, call us at 302-892-9200 or email us.
Contact Tiffany Poole at Rahaim & Saints today for a free consultation.