Car Repo – Bankruptcy saves the car

    0
    165
    car repo

    Filing bankruptcy can stop a car repo. That is important to know if you are one of the 7 million Americans who are behind on car payments. If you are one of them, then you are in serious danger of a car repo. Each car lender has their own rules about how far you can slide. But most lenders will put you out for a car repo when your payments are 60 days late.

    If you lose your car you are going to find out the hard way that suffering a repossession is very self defeating. And it makes no difference if you voluntarily surrender the car. If you are the co-signer on a repossessed car, you are in just as much trouble as the main borrower. The bad outcomes will be the same for both of you.

    Your credit may be ruined. It may be impossible to buy another car without a co-signer. And you will still owe the remaining loan balance plus towing and storage after the lender sells your car. Normally, the lender will auction it off. Cars sold at repo auctions normally go for just a fraction of street value. The lender will deduct the net auction sale price from your loan balance, and may sue you for the difference.

    If they get a judgment they can force you to pay the remaining debt by garnishing your pay, grabbing money from your bank account, and liening your property.  

    The end result of a car repo is that you are still paying for a car you no longer have. You might be walking to the bus stop, but you will still have a car debt!

    A bankruptcy case creates an immediate automatic stay. The automatic stay is an Order from the bankruptcy court that stops debt collection. It also stops a car repo. In fact, the automatic stay is so powerful that it may force you lender to return a car they already picked up.

    The bankruptcy court can approve a payment plan that lets you start off fresh on your car loan. You should see a bankruptcy lawyer immediately if you are one of the 7 million people who are behind on payments.

    The Los Angeles bankruptcy lawyers of Bayer, Wishman & Leotta have been successfully stopping the Repo Man since 1989 and providing a free legal consultation for people with debt problems. Know your legal rights. 

     

    SHARE
    Previous articleStop Bill Collectors
    Next articleSee a Bankruptcy Lawyer – But read this first
    Jeff Wishman of the law firm of Bayer, Wishman & Leotta has successfully represented clients in bankruptcy for over 34 years. He and the lawyers in his firm are Certified Bankruptcy Specialists that bring experience, skill and creativity to the highly complex area of bankruptcy law. At this Los Angeles law firm, the your initial consultation with an expert is free.