Are you hiding from the repo man?
April 13th, 2016
One of the most common issues for my clients are loans tied to vehicles that have been repossessed. In a perfect world, my clients call me when they have gotten behind on the car loan but the vehicle hasn't been picked up yet. In these circumstances, I can file a Chapter 13 bankruptcy to protect the vehicle from being repossessed and then repay the car creditor on the loan over a three to five year time-span. I can also adjust the interest rate to a much lower rate than what my clients are normally paying. In some circumstances, my clients can pay the car loan back based upon the vehicle's value rather than the full amount that is owed, which can save them thousands of dollars. Even when a vehicle has been repossessed, it might not be too late. A car creditor is required to give a borrower a set amount of time to make arrangements on a loan before the lender is permitted to auction the vehicle. Provided that the vehicle has not been sold yet, when a bankruptcy is filed, the car creditor is required to return the vehicle to the borrower. If the vehicle has already been sold, a bankruptcy may still be the best option to address the debt that likely still exists after the vehicle has been sold. Repossessed vehicles are normally auctioned for far less than their actual value, leaving the borrower responsible for the difference between the auction price of the vehicle and the amount owed on the loan at the time of auction. The debt can also continue to accrue significant interest. If you or someone you know is having issues with a car loan, call our office to discuss how we can help to save your car from repossession.