Saving Your Car with Chapter 13
Our Chapter 13 Lawyers Fight Against Car Repossessions
Is your debt threatening your ability to make car payments? Then you may be able to save your car and stop repossession by filing Chapter 13 bankruptcy. For almost 30 years, The Sader Law Firm has assisted individuals and their families in and around Kansas City and throughout the states of Missouri and Kansas dealing with stressful financial situations. Our Chapter 13 lawyers have experience working closely with those who fear repossession.
Chapter 13 stops the repossession of your car, allows you to continue driving and, in some cases, lowers your monthly payment.
Will a Chapter 13 Stop the Repossession of My Car?
All repossession efforts by a lender must generally halt once you file a Chapter 13 bankruptcy. After filing a Chapter 13, the Bankruptcy Code entitles the debtor to the benefit of the “automatic stay”. The automatic stay, with few exceptions, immediately stops creditors from pursuing any action against property a filer owns. An automatic stay also puts an end to harassing phone calls from most creditors looking to collect on debts. If a lender just repossessed your car, then consult with our law firm immediately. We can explain how we may still be able to save your vehicle before it goes to auction.
How Does Filing Chapter 13 Help Me Afford My Car?
Filing Chapter 13 bankruptcy can help a struggling individual or family make car payments by alleviating the need to pay other debts. Chapter 13 can also allow you to surrender that vehicle in which you are upside down. Doing so means you do not have to worry about a future deficiency balance. In certain cases, Chapter 13 can be used to lower car interest rates. It could also allow debtors to “cramdown” both their car loan and interest rate over a three to five year repayment plan. This benefit is not available to individuals who file Chapter 7 bankruptcy. To qualify, the loan must have been used to purchase the car, and you must have purchased the vehicle at least 910 days prior to filing bankruptcy.
In a Chapter 13 bankruptcy, individuals often repay unsecured debts for only pennies on the dollar. These include outstanding medical bills or credit card debt. In certain cases, unsecured creditors may receive zero cents on the dollar.
Free Phone Consultation with a Bankruptcy Attorney Near Me
If you want to keep your car but presently do not have the financial means, then you may need a Chapter 13 reorganization plan. Reach out to The Sader Law Firm, where bankruptcy is our focus. Call today to speak with one of our Chapter 13 bankruptcy lawyers for a free consultation. These free initial phone consultations allows us to advise you in 10 to 15 minutes whether bankruptcy is the right decision for you. You may be unaware of the legal tools available to stop the repossession of your car, a home foreclosure and much more.