Repossession can be avoided!!
Everybody gets into a tough financial situation at one time or another. But that doesn’t mean your car should be taken away hindering your ability to get to work and earn the income that you need to make your car payments.
If you are behind on your payments and your lender is threatening to repossess your vehicle, you can use a Chapter 13 bankruptcy to stop and force them to accept your past due payments in small increments over a lengthy period of time in order to get current. (You still have to make all of the regular payments).
For example: let’s say your car or truck payment is $500/month. Because of a temporary lapse in income you find yourself 75 days past due knowing that, once you pass 90 days past due, your vehicle is going to get repossessed. However, you don’t have the $1,650 needed to catch up on your payments and pay the late fees. What can you do?
While you might consider calling your lender to ask for more time, we have found that, in many cases, the lenders will simply use your goodwill gesture to obtain information from you — like where you keep your car — so that it will be easier for them to repossess it, sell it and then sue you for a deficiency (the amount that you owe in excess of the amount that they resell the car for at a wholesale auction). When this happens you will not only have no transportation, you will likely be faced with a lawsuit, as well as significant damage to your credit that will make it unlikely that you will be able to finance another car.
If you want to avoid this unfortunate scenario (that repeats itself day after day), there is only one way that is legally guaranteed to prevent it — a Chapter 13 bankruptcy. Even if you just had your car repossessed a day or two ago, a Chapter 13 will likely help and will likely force the car company to return your car.
Once you file a Chapter 13 you can force your lender to accept your past due payments in small increments over a five-year period — as long as you continue to make your regular payments. In the example outlined above, repaying the $1,650 that you owe over 60 months will result in affordable payments of $27.50 per month on top of your regular payment. At the same time you will be assured that your lender cannot legally repossess your car or take any other action against you.
Thus, if you fell behind on your car or truck payments because of an emergency that temporarily disrupted your cash flow (such as a layoff, a medical emergency or a short term job loss), filing a Chapter 13 will allow you the time that you need to get back on your feet, keep your vehicle and avoid defending a lawsuit seeking to collect the amount that your lender claims is due. At the same time you will get the other benefits of a Chapter 13 — including being able to get rid of most, if not all, of your credit card debt.
So, if you live in the Metro Detroit Area and want to avoid having your vehicle repossessed, please call us today at 248-417-9800 or contact us online to set up an appointment for a FREE, no obligation, confidential consultation to discuss your financial situation and your pending repossession, and to get the process started by crafting a plan that reflects your specific financial goals.
Waiting is not going to make the problem go away — it will just make it worse. That’s why we urge you to call us RIGHT NOW — so that you can get avoid losing your car and, instead, get the “fresh start” that you deserve — as soon as possible. Our phone lines are available 24 hours a day, so CALL US NOW at 248-417-9800. We look forward to hearing from you!
