If you are in over your head in debt and considering filing for personal bankruptcy, you may be worried that you will be left with absolutely nothing. Without a car, for example, how will you be able to get to work and earn a living to pay future bills and get back on your feet financially?
The truth is, US Bankruptcy Laws provide, in most cases, for you to be able to keep at least one vehicle that you own outright. Further, even if you are making payments on a car or truck, you will be permitted to keep it providing you can continue to make the payments on it after you file for bankruptcy.
If you are in a position where you need your car and fear you’ll lose it during bankruptcy, you need to contact an experienced debt lawyer who will review your situation and advise you about how you should proceed.
- My car is about to be repossessed! Help! As soon as you file for bankruptcy, either Chapter 7 or Chapter 13, you will get the benefits of the “automatic stay.” At that point, creditors must cease any efforts to collect debts and this includes debts involving your car loan. Any repossession process will be put on hold.
- What happens when my car gets repossessed because I couldn’t make the payments? Your vehicle will be taken to an auto auction where it will be sold for probably less than it’s worth. The lender will then add that loss to your loan and you will still have to pay the loan and any deficiency. However, filing for bankruptcy can allow you to have that debt discharged.
- Can I get my car back by filing for bankruptcy? If the car wasn’t sold already, you may be able to get it back if you file for bankruptcy quickly enough. In this scenario, Mr. Spivack will attempt to negotiate a repayment plan you can live with so you can keep your car.
Another great thing about the way bankruptcy impacts car loans is this: if it turns out that we can prove your car is worth less than the amount you owe, we may be able to get the loan reduced to the car’s current value.
Don’t try to handle bankruptcy without the assistance of a knowledgeable lawyer who will protect your rights and advise you throughout the bankruptcy process. Joel R. Spivack Esq will help you get back on your feet financially and protect your every step of the way.