Besides our home, our car is our most valuable possession. It's how we get to work; it's how we take our kids to school; it's how we go to the grocery store and the doctor. Our vehicles allow us to take care of all the things our busy lives require us to do.
If a creditor is threatening to repossess your car, you are probably worried about how you will get things done without it:
These kinds of questions can make the idea of repossession terrifying. Fortunately, repossession is not inevitable, even if you can't afford your payments.
If you are afraid you might lose your vehicle, you can call or text DebtStoppers to schedule a free debt evaluation with one of our qualified Illinois attorneys. A DebtStoppers protection plan applies Illinois bankruptcy laws to stop creditors from repossessing your car or truck.
If you can't afford your auto loan payments, repossession laws in Illinois allow your financer to take possession of the vehicle. When you take out an auto loan, you borrow the amount needed to make the purchase and then pay it back to the lender in installments.
By agreeing to the loan, you permit the vehicle to serve as "collateral" that the creditor can repossess if you don't make your payments. If you can't afford to pay your loan, Illinois laws entitle the lender to take back the automobile as long as it is done in a way that does not breach the peace.
If you can't pay your loan and are concerned about repossession, bankruptcy laws may offer the best solution. Once you file a petition in Illinois, a judge will issue a court order requiring that your creditors immediately cease all efforts to seize your possessions. This means as soon as you file for bankruptcy, your lender cannot repossess your automobile. You may even be able to recover a vehicle that has already been repossessed.
Illinois Chapter 13 laws allow you and your attorney to restructure your debt into an affordable repayment plan. You can make reasonable payments each month and still keep your home, vehicle, and other property.
In a 13, it’s even possible to get the value your car payment adjusted to reflect the car’s current value. This can lower your monthly car payment.
Filing for Chapter 7 can also help some people avoid repossession. While Chapter 7 laws require that you liquidate some of your assets to pay your creditors, DebtStoppers clients are seldom ordered to give up any of their possessions. You will almost always be able to work out a plan that allows you to file for Chapter 7 and still keep your car.
If you're struggling to pay your auto loan, you don't have to wait around for your lender to repossess your vehicle. You can take action today! Call or text DebtStoppers at 312-913-0630 to contact our accomplished Chicago bankruptcy lawyers. We have helped countless people use the benefits offered by bankruptcy laws to avoid repossession, and we can help you do the same.
As Illinois' largest debt relief law firm, DebtStoppers have helped thousands of people file for bankruptcy. We are also the only law firm in the state that offers a real $0-Upfront Chapter 7 plan. Call or text us today to get started!