Are you behind on paying your car loan, truck loan, or a loan on another type of motor vehicle? Are you afraid your vehicle will be repossessed? When you are struggling with overwhelming and out-of-control debts, losing your vehicle will make things much worse overnight. Most Addison residents need their car to get to work and get their kids to school, so avoiding repossession is an absolute necessity.
The experienced Addison bankruptcy attorneys at Rubin & Associates can help you keep your vehicle. If you call or text us for a free consultation, one of our lawyers will gather the details about your situation and then patiently explain your options – and most importantly, your rights against your creditors. Filing a bankruptcy case immediately stops all debt collection efforts from your creditors, including any repossession attempts.
Prevent car repossession in Addison
For most Addsion residents, a Chapter 13 bankruptcy is usually the best solution for saving a car or truck from repossession. As long as you follow the payment plan set up by your Chapter 13 plan, repossession is put on hold. You would continue making your original payments until the vehicle is paid off, and typically any arrears are included in your Chapter 13 plan. Sometimes, you pay only the present value of the vehicle at a reduced interest rate through your Chapter 13 plan.
How will your lender try to repossess your car?
If you are far enough behind on payments that your creditor will attempt repossession, there are typically three methods your lender will use:
- The “voluntary repossession” method: This is the method used by many creditors. They will attempt to advise you that you must sign the voluntary surrender. Don’t fall for it – you are not legally required to sign anything. If you do not sign, they cannot take your car.
- The court order method: Creditors can go to a judge and obtain a court order to seize your vehicle. There are no documents for you to sign and a deputy sheriff or marshal will have your car towed.
- The “self-help” method: This is the method you typically see in television shows and movies. Your creditor will simply take your vehicle without further notice.
If you file a bankruptcy case before your car is repossessed, you will keep your car. If your car has already been repossessed, you should call or text us as quickly as possible – you have a limited time after repossession when you can get your vehicle back.
Schedule a free consultation today
If you’re behind on car payments and worried that you’re facing repossession, call or text us today for a free consultation. One of our Addison bankruptcy attorneys will gather details about your situation and explain every available option to you. Bad things happen to good people – let our team help you keep your vehicle and get your finances under control!