What You Need to Know About Bankruptcy When you have…Share This Post!
Glendale Car Repossession Attorney
Car Repossession in Glendale, AZ
Car Repossession Attorney in Glendale, AZ
If you’re dealing with debt and struggling to pay debts, filing bankruptcy can be an option for you. Declaring bankruptcy can also help stop the repossession of your car. To stop repossession, a Glendale car repossession attorney can help.
When filing bankruptcy, you generally have tow two types of consumer bankruptcy options to choose from:
The type of bankruptcy you file will have different effects on your car loan. While filing bankruptcy under either chapter will protect you from debt collectors and creditors, you have to make some form of payment to keep your car. To know which bankruptcy best fits your financial situation, consult with Glendale Bankruptcy Attorneys. Our experienced car repossession attorneys in Arizona can help you stop repossession and keep your car. Call us at 623-471-1377 for a free consultation.
Stop Car Repossession with Automatic Stay
When you file for bankruptcy, the automatic stay immediately takes effect to prevent creditors from harassing you. Once a bankruptcy court issues the automatic stay, all collection efforts from a debt collector, collection agency, or government agency immediately stops. The automatic stay’s power extends to wage garnishments, home foreclosures, and car repossession.
The automatic stay is primarily designed to stop immediate property foreclosures or car repossessions from happening. It stops collections for credit card debt and other loans as well.
However, an automatic stay won’t stop criminal charges, child custody, alimony, or other eviction proceedings. To know more about how you can stop repossession of your car, call our trusted Glendale car repossession attorney.
Prevent Car Repossession with Chapter 7
If you’re not able to pay your car loan payments on time, a Chapter bankruptcy can temporarily prevent car repossession. It can delay the lender from repossessing your can so can negotiate or cure your default payments. However, Chapter 7 will only last a few months. Once the bankruptcy process is over and the automatic stay is no longer in effect, lenders are free to repossess your car again.
Chapter 7 only provides temporary relief from repossession. It can, however, give you more time to negotiate with your creditors and come up with a solution that benefits both you and your lender.
Call us today at 623-471-1377 to find out if you qualify for a Chapter 7 bankruptcy discharge and stop repossession.
Stop Car Repossession by Negotiating a New Loan Term
A Chapter 7 bankruptcy gives you ample time to negotiate with creditors so you can keep your car. Chapter 7 bankruptcy, is known as a straight or liquidation bankruptcy, that clears away many types of unsecured debts.
While Chapter 7 provides a debt discharge and clears all your personal liability on the loan, it, unfortunately, does not wipe out the voluntary lien of your lender. That is why lenders resort to repossessing your car after bankruptcy. As a result, lenders get more incentive if they negotiate new loan terms because it means that they get the interest payments as well as the entire loan balance.
A lender might even be open to reduce the balance or lower the interest rate of your car loan. Although you have to remember that to do this, you have to reaffirm and loan and be personally liable for the car loan.
Stop Car Repossession by Curing the Default
If you can afford to pay your current loan and cure the default, then lenders will basically have no reason to take back your car. During the automatic stay, you can come up with a plan on how you want to pay your loan balance and continue paying the loan.
Redeem Your Car and Wipe Out the Lien
Through Chapter 7, you can easily wipe out the lien of your lender by simply redeeming your car. This means that you can buy back your car at a discount by paying its current value, and not the actual amount you owe. This is beneficial for you especially if the amount you owe is more than your car’s actual worth. However, you can only redeem your car if you can make a lump sum payment to your lender.
If you plan to redeem your car, you need to file a motion and get court permission. A Glendale bankruptcy and car repossession lawyer can help you with this process so you can redeem your car. Call us today at 623-471-1377!
Stop Repossession with Chapter 13 Bankruptcy
Stop Repossession with Chapter 13 Bankruptcy
When you file a bankruptcy under Chapter 13, the automatic stay will also take place, prohibiting all debt collection attempts from creditors.
If your lender hasn’t repossessed your car when you filed for bankruptcy, then the stay will prevent your lender from taking your car until the bankruptcy court approves your debt reorganization plan under Chapter 13. If your debt repayment plan pays back any missed loan payments for your car, then the creditor can’t repossess your vehicle during the bankruptcy period. If you’re current on your car loan payments, then the lender won’t be able to repossess your car after bankruptcy as well.
If you’re worried that your car might be repossessed, then it’s highly likely that you can’t afford to make the loan payments for your car. If what you owe is more than the actual value of the car, then a Chapter 13 bankruptcy might help.
Reduce Your Loan Balance
Under Chapter 13, you can reduce the loan balance of your car if the loan meets certain conditions. A high interest rate can also be lowered to a more affordable rate. Any remaining balance is considered an unsecured loan, and you only get to pay if your budget allows.
When a Stay Can’t Help
In some instances, a lender repossesses your vehicle before you can file for Chapter 13 bankruptcy. For cases like this, there’s still a chance you can get your car back. Under your repayment plan, you need to provide payments for the arrearage and prove that you can maintain paying your can loan. If your car has been repossessed and you plan on applying for Chapter 13 bankruptcy, consult with a bankruptcy attorney right away. Our Glendale bankruptcy and car repossession attorneys can help you file your bankruptcy and assist you with all the needed legal documents and paperwork.
Stop a Car Repossession with the Help of a Glendale Car Repossession Attorney
Connect with a Glendale car repossession lawyer today so we can help you with your financial concerns. We can assist you in choosing the right bankruptcy chapter that will suit your financial needs. Our seasoned attorneys can stop repossession and guide you through the bankruptcy process. Contact our Glendale bankruptcy law firm today or call us 623-471-1377 at for a free consultation in Glendale and nearby communities in Arizona.
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