Can bankruptcy stop the repossession of my car?
Many people place a high value on their personal vehicles. Our vehicles are essential for our daily transportation and are often our most valuable assets. It can be shocking and even a little frightening when a lender informs you that they are planning to repossess your vehicle. If you’re experiencing this, you may ask yourself “How can I stop the repossession and protect my vehicle?” The good news: bankruptcy is a tool that you can use to do this. When you file for bankruptcy, the “automatic stop” protects you while the bankruptcy process is pending. The automatic stay protects against a number of things, including the collection of debts, repossession of assets and threats from lenders to repossess a car. If a lender wants to resume repossession while the bankruptcy case is still pending, it will have to ask for permission from the bankruptcy court through a “relief of the stay”. You can stop them from doing so by agreeing to make up the back payments on the vehicle via bankruptcy. How is this done? You can do this by filing a Chapter 13. You can catch up on your car loan balance by filing Chapter 13 bankruptcy. Your attorney can advise you how to tailor the process to your specific circumstances. They can also help you create a plan that works with your budget and takes into account your financial needs. If you are behind on your car loan, lenders may not be willing to work with you. They may require that you pay the entire balance all at once or make a series large payments, which can be unmanageable, in a short time period to stop or delay the repossession. By leveraging the bankruptcy resources, you can regain the control over the repossession process and protect your car on terms that are suitable for you and your budget. Call Now for a Free Strategy Session with A MN Bankruptcy Attorney
If your vehicle is being repossessed or you have a back-balance on your car loan, and you’re wondering how to resolve the situation, give us a ring! When the time is right, or when you are ready, please don’t hesitate to reach out to Minnesota’s most kind and helpful bankruptcy law firm by going now to
www.lifebacklaw.com
.
