Getting Your Automobile Back During Bankruptcy
Getting Your Automobile Back During Bankruptcy
Bankruptcy attorneys in Monrovia, CA can tell you that two of the most important issues consumers filing bankruptcy face are loss of their house and auto repossession.People having a debt crisis and considering bankruptcy are frequently behind on their automobile payments. Losing your car can present a whole new set of problems because lack of transportation makes it difficult to get to work or makes it impossible to get children to the many places they need to go like to school and doctor appointments.
For these reasons, the bankruptcy law now provides several ways you can avoid having your car repossessed. The first step is to hire an experienced attorney who is current on bankruptcy law and can work for you and your family's best interests. It's important to retain a bankruptcy attorney earlier rather than later because the sooner the attorney can intervene on your behalf, the sooner you can get the matter resolved and possibly avoid the embarrassment of your auto being repossessed.
Filing a Chapter 13 bankruptcy can not only relieve your debt load, but it can make it possible to negotiate new terms for the auto loan. The bankruptcy law provides several options for consumers,and the bankruptcy attorneys in Monrovia,CA will help you choose the right form of relief based on personal circumstances.
Getting Auto Loan Relief
One of the first options is renegotiate the loan with the auto lender to lower the payments.If you can come to agreement, the new plan can be presented to the bankruptcy court.It's important to have the Chapter 13 bankruptcy filed with the court though so you can prove your honest intent and ability to make even the lower payments.
A second option that lawyers in Monrovia,CA may suggest is voluntary repossession. In this case you would actually surrender your car to the lender. Though you would lose the car,a repossession action is not necessary. This can make it much easier to get a new loan in a fairly short period of time after the bankruptcy is discharged.
A third option is to ask for a reaffirmation of debt during bankruptcy. In this case you would obtain a contract for the loan that the court has approved that indicates you will pay the car loan though it is a dischargeable debt under the bankruptcy. There are certain circumstances that control this option and the bankruptcy attorneys in Monrovia,CA will first review the existing contract to see if bankruptcy is defined as an event of default.
Paying Off the Debt
Of course another option is paying off what you owe on the car so that debt is eliminated. This option is difficult for many people filing bankruptcy because there is not enough available cash. But it is an option you need to be aware of.
Clearly there are many different ways to try and stop auto repossession during bankruptcy filing. Experienced bankruptcy attorneys in Monrovia, CA can offer invaluable advice that can help you manage the Chapter 13 bankruptcy in a way that enables you to keep your much needed car.
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