Except for our homes, our cars are usually our most precious possessions. Our vehicles help us get the places we need to go, get the things we need, and care for our families. But if you're late on your auto payments, your sole means of transportation could be taken away from you in the blink of an eye.
When people finance cars or trucks, lenders retain the legal right of repossession until the vehicle loan is paid off. What rights the lender has depends on the terms of the loan agreement and your state's laws. Frequently, if you stop making your loan payments on time, your creditor will have the right to take back your car without having to sue you or even warn you ahead of time.
If you're struggling with financial hardship and are afraid you'll lose your vehicle, call or text DebtStoppers to request a free debt evaluation with one of our skilled bankruptcy attorneys. A DebtStoppers debt relief plan can stop repossession while taking care of your debts once and for all.
When you take out an auto loan, the vehicle typically serves as "collateral." This means the lender can repossess it if you fall behind on your payments.
Once the creditor takes possession, they can either keep it as payment for your debt or sell it publicly or privately. But it doesn't stop there. If the amount made on the repossession sale doesn't pay off your loan, you may be responsible for paying a "deficiency balance."
If you're struggling to make your auto payments and are worried that your lender will repossess it, bankruptcy is the best option for dealing with your debt problems. As soon as you file for bankruptcy, the court will grant an "automatic stay," which orders your creditors to immediately stop their collection efforts. This means that, among other things, your car is staying right where it is. If you act quickly, you can even recover a vehicle that has already been repossessed.
Chapter 13 bankruptcy reduces your debts and restructures them into a single monthly payment that you can actually afford. This allows you to pay back your debts over time and maintain possession of your home, car, and other property. You can also get your payment reduced to match the car's current value, which can significantly lower your monthly car payments..
Chapter 7 bankruptcy can also help stop repossessions. While Chapter 7 technically requires you to liquidate assets to pay back creditors, DebtStoppers seldom sees our clients give up any of their property. In addition, we can almost always negotiate a plan that allows you to keep your car.
If your financial difficulties have caused you to fall behind on your auto loan, you can take action to stop repossession today. Don't sit back and wait for your vehicle to be repossessed; call or text DebtStopper to schedule a no-cost consultation with one of our accomplished bankruptcy lawyers. We have saved thousands of cars and trucks from repossession, and we can help you stay in yours.
Don't let your creditors stop you from getting to all the places you need to go. Call or text DebtStoppers today to protect yourself.