How Bankruptcy Can Stop Repossession and Get You Back on Track

Are you worried about losing your car because you’re struggling with debt? You’re not alone. Car repossession can be a scary and stressful experience, but there’s hope. Our Georgia bankruptcy attorney could be your key to stopping car repossession and getting back on track financially.

When you can’t keep up with car payments, repossession might feel like it’s right around the corner. It’s a tough spot to be in, but don’t panic. There are ways to prevent repossession and keep your car parked in your driveway where it belongs.

Quick Summary:

  • Car repossession occurs when a lender takes back a vehicle due to missed payments or other violations of the loan agreement.
  • Cars get repossessed  if you can’t pay for it anymore. This can happen because of money problems, unexpected events, or not being able to afford the loan payments.
  • Bankruptcy can stop car repossession by initiating an “automatic stay.” This prevents creditors from seizing the vehicle. It provides a chance to reorganize debts or liquidate assets under Chapter 7 or Chapter 13 bankruptcy

What is Car Repossession?

Car repossession happens when you can’t keep up with your car payments, and the lender takes your car away. It’s like when you borrow money to buy a car, but then you can’t pay it back on time. The lender has the right to take the car back because it’s the collateral for the loan.

When a car gets repossessed, it’s usually not a pleasant experience. The lender might send a repo agent to take the car from you, and they can do it without warning. They might even come to your house or your work to take the car back.

Why Do Cars Get Repossessed?

Understanding these common reasons for car repossession can help you stay on top of your finances. It also helps you avoid getting into a situation where your car is taken away. If you’re struggling to make your car payments, it’s important to communicate with your lender. This gives you an opportunity to explore your options to prevent repossession. Here are the most common reasons why cars get repossessed in the United States:

Missed Payments

One of the most common reasons for car repossession is missing payments. When you take out a loan to buy a car, you agree to make regular payments to the lender. If you miss one or more of these payments, the lender may decide to repossess your car.

Financial Hardship

Sometimes, unexpected financial difficulties can make it hard to keep up with car payments. This could be  from losing a job, facing medical bills, or other financial challenges. If you can’t afford to make your car payments, the lender may repossess your car.

Defaulting on the Loan

Defaulting on your car loan means that you haven’t met the terms of the loan agreement. This could happen if you consistently fail to make payments, or if you violate other terms of the loan agreement, like not having insurance on the car.

Change in Circumstances

Life can be unpredictable, and sometimes circumstances change. If you experience a major life event like a divorce, illness, or relocation, it can impact your ability to make car payments. In these cases, the lender may repossess your car if you can’t find a way to catch up on payments.

Stop Car Repossession Now: How Bankruptcy Can Help

If you’re worried that your car might get repossessed because you’re struggling with debt, there’s a way to get relief – it’s called bankruptcy. Bankruptcy is a legal process that can help you deal with overwhelming debt by giving you a fresh start. And one of the big benefits of bankruptcy is that it can put a stop to car repossession.

When you file for bankruptcy, something called an “automatic stay” goes into effect. This is like hitting the pause button on any collection actions, including car repossession. It means that your creditors can’t take any further action to repossess your car while the bankruptcy process is going on. This includes the company you owe money to for your car. 

There are different types of bankruptcy, but the two most common ones for individuals are Chapter 7 and Chapter 13.

Chapter 7

Chapter 7 bankruptcy is often called “liquidation” bankruptcy. It involves selling off your assets to pay your debts. But don’t worry – in many cases, you can keep your car even if you file for Chapter 7. There are exemptions in bankruptcy law that allow you to keep certain assets, including your car, up to a certain value.

Chapter 13

Chapter 13 bankruptcy is sometimes called “reorganization” bankruptcy. It involves creating a repayment plan to pay off your debts over time. With Chapter 13, you can often keep your car and catch up on missed payments through the repayment plan.

Facing Repossession? A Georgia Bankruptcy Attorney Can Hit the Brakes

Many people worry about their cars being taken away when they can’t pay their bills. But don’t worry, there’s help available. Our Georgia bankruptcy attorney can be your guide and protector during this tough time. Here’s how we can help:

Understanding Your Options

We can explain the different types of bankruptcy and how they might apply to your situation. We’ll help you figure out if bankruptcy is the right choice for you and which type would be most beneficial.

Negotiating with Creditors

We can negotiate with your creditors on your behalf to try and work out a deal to keep your car. We might be able to arrange a new payment plan or modify your loan terms to make it easier for you to keep up with payments.

Protecting Your Rights

We will make sure that your rights are protected throughout the process. We’ll help you understand what your rights are and make sure that creditors aren’t taking advantage of you.

Don’t let the fear of losing your car overwhelm you. With the help of our bankruptcy law firm, you can fight to stop car repossession. They’ll stand by your side, explain your options, and fight for your rights. 

Let Our Georgia Bankruptcy Lawyers Help Fight Back Against Car Repossession

Facing car repossession is a stressful situation, but filing for bankruptcy can be a powerful tool to stop it. With bankruptcy, you have options to keep your car, whether it’s Chapter 7 or Chapter 13. These options can give you time to figure things out and get back on track financially.

At Northwest Debt Relief Law Firm, our Georgia bankruptcy attorneys can guide you through the process and protect your car from being repossessed. Our bankruptcy law firm can help you file the necessary paperwork and make sure everything is done correctly and on time. We’ll also discuss other options you might have and help you decide what’s best for your situation.

Don’t wait until it’s too late to stop repossession. Contact us now for free debt solution consultations and let us help you protect your car and regain control of your financial future.