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Bankruptcy can provide you with several options to solve or stop a repossession.
An automobile repossession is not only stressful, but also can be quite expensive to the owner(s). Repossession is most often authorized by you in your auto loan agreement. It authorizes the lender to repossess your vehicle in the event you fail to make your monthly car loan payments. The process of repossession works as follows:
- A company is hired by the lender to locate and pick up your car from your home or workplace.
- Your car is then sold at a wholesale auto auction to the highest bidder. The price received for your car is usually a significant discount from the car’s retail value or the value you could have received if you sold the car by yourself.
- The difference between the remaining balance on your auto loan plus costs of repossession, and the price received for your car at the wholesale auto auction is assessed against you as a “deficiency balance”. For example, assume:
- The remaining balance on your loan is $20,000;
- The costs of repossession are $500; and
- The sale price of the car at the auto auction was $10,000,
- The “deficiency balance” you owe to your auto lender is $15,000.
- A lawsuit is filed against you to recover the “deficiency balance.” However, a lawsuit need not be filed in order for a “deficiency balance” to exist. The lender has several years to collect this debt against you.
In the event your car has been repossessed and a “deficiency balance” remains after the sale of your vehicle, a bankruptcy may be able to eliminate this debt (along with your other dischargeable debt). Be sure to disclose your repossession with your attorney at your free consultation in our office.
A bankruptcy may also prevent a repossession from taking place. If your auto lender is threatening to repossess your vehicle, a bankruptcy can immediately stop any effort to repossess you car. If you cannot repay your auto loan arrears and want to return your car , you may do so during the bankruptcy and still eliminate your debt related to the auto loan. A Chapter 13 bankruptcy may allow you to keep your car and repay your auto loan arrears on a monthly basis over a 3-5 year period. A Chapter 13 bankruptcy may also force your lender to lower your principal balance and interest rate in repaying the auto loan.
So what WILL happen if your car does get repossessed...here is what we have seen all too frequently:
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If you can't pay all your bills....you could end up losing your car...and your home. Without your car....you lose your job.
How do you get to work without your car?
No car...No job.
No job...No income.
No income...No home.
Who will take care of your family then?
Do you have other family to take you in?
Do they even have room?
Can they afford to take care of your family too?
How will it feel for you?
What if they can't take you in?
Where will you go?
When there is no other choice,
....you know what happens.
The worst.
You and your family can end up out on the street.
Don't let this happen to you
Bankruptcy has kept millions of families off the street.
But....
Don't wait so long that not even bankruptcy will help.
If you have more bills than you can pay,
call today for a FREE Debt Consultation
....before you lose your car,
....before you lose your job, and
....before you lose your home.
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To receive a free consultation regarding your (or your friend or family member’s) debt problems, please contact us today. |
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