Repossession Attorney in Springfield
Most of us rely heavily on our vehicles. It is our transportation to work,
how we get our children to school, and our security blanket knowing we
can get where we need to go when we need to get there. Vehicle loan payments
are the second largest expense for most households, just behind mortgages
or rent. Not making the loan payments for your car may lead to the repossession
of your vehicle.
If you file a
bankruptcy immediately after a vehicle repossession you can often get your car back.
If you have had your vehicle repossessed because you couldn’t make
the payments, you may be asking yourself, “Can I get my car back
if I file a bankruptcy?” In many cases the answer is yes. Your specific
circumstances will determine the best solution, but a bankruptcy may be
the answer if you act quickly.
Licata Bankruptcy Firm PC can help you protect your property from repossession. Schedule a consultation
by completing our
online form or calling us directly at
(417) 213-5006 today.
What Is Repossession?
A better understanding of how repossessions work will give you an insight
as to if a bankruptcy consultation will be helpful. If you default on
your car loan the bank or lender can repossess your vehicle.
Once the bank has the car in their possession, they tend to sell the car
at an auto auction to recover the remaining balance on your car loan.
Often the sale price will not cover the full loan leaving you a deficiency
balance to pay even though you no longer have the car.
There are options in filing a
Chapter 13 for getting a repossessed vehicle back from the lender and keeping it
with a more manageable payment. A
Chapter 7 bankruptcy can give you a clean slate from the car loan all together.
If your circumstances have changed and you can no longer afford the loan
either type of bankruptcy will also discharge any potential repossession
What if you are behind on your car loan, and the threat of repossession
is looming? Filing a Chapter 7 bankruptcy or a Chapter 13 bankruptcy will
stop the creditor from repossessing your automobile. A law called the
automatic stay prohibits the lender from repossessing the car while you
are in bankruptcy.
To move forward with repossession the lender must file a motion with the
court asking that the automatic stay be lifted. Filing Chapter 7 in Springfield
Missouri will give you a limited amount of time before the lender is allowed
to proceed with the repossession, but often this is enough for clients
to work something out with the lender or find a replacement mode of transportation.
A Chapter 13 bankruptcy is a way to retain the vehicle and pay back the
missed payments as well as the existing loan over time. This will often
reduce the monthly expense on the car loan by paying the balance of the
loan over a 5-year period and utilizing the interest rate allowed by the
court. This interest rate does vary but is almost always less than the
rate of the existing loan especially if a “buy here pay here”
lender was used to finance your vehicle.