If you live in Knoxville and are in fear that your car maybe repossessed their is a solution.
If you live in Knoxville and fear your car maybe repossessed, Bankruptcy can stop that from happening.
Bankruptcy can be a scary word. But it doesn’t have to be! Bankruptcy is the discharge of your debts, giving you relief from creditors and the ability to move on with your life. If you are struggling with car repossession, bankruptcy may be the answer for you.
Let’s talk about what car repossession means and how bankruptcy can save your car from being taken away by a creditor.
Creditors have the right to repossess your car because they have put a lien against the vehicle. This lien, along the with the loans documents you signed gives the creditor the right to take you car if you become late or stop making your car payments. Creditors can technically start the repossession process even if you are only one day late.
There are car repossession companies that work for creditors like banks, finance companies, and leasing agencies to get the possessions of people who owe them money.
When you don’t make your car payments, these creditors will contact a car repossession company in Knoxville or one near where you live, send it to come to take your car, and sell it at auction. The creditor makes their money back plus some profit from selling the car, so they may be less inclined to negotiate with you on anything other than paying off what is owed as quickly as possible.
When you fall behind on your car payments, the creditor has the right to come and get your vehicle. This is called repossession. When the creditor repossesses your vehicle, they typically sell the vehicle at an auto auction. Most vehicles sold at auction bring only a fraction of retail value. This typically leaves you with a significant deficiency balance owed to the creditor. So, not only have you lost your car, but the creditor will almost surely sure you for the difference between what you owed them and what they sold the car for.
Before it becomes to late. A Debt Relief attorney can help you save your car.
Bankruptcy is a great way to protect your car from repossession. If your car is in an active repossession, or even if it has been repossessed, filing bankruptcy will stop the active repossession and may even allow you get your vehicle back if it has been repossessed. Time is of the essence when facing repossession. Please contact the skilled, and highly qualified attorneys at Cindy Lawson & Associates P.C. for a free, no-obligation consultation. We can help you keep or even get your vehicle back.
Filing bankruptcy instantly stops all creditors from collecting debts. This includes repossessing your vehicle. There are two ways that bankruptcy can help you keep your car:
A Chapter 7 Bankruptcy will immediately stop the repossession of your vehicle. Unfortunately, this pause is temporary, unless you can get current on the vehicle very quickly. Otherwise, the creditor can ask the Bankruptcy Court to allow them to continue repossessing your vehicle. Chapter 7 Bankruptcy is useful if you are trying to buy a little time to either get current on the vehicle or find another vehicle. Also, if the vehicle is sold and you have a deficiency balance, Chapter 7 Bankruptcy will wipe away that deficiency.
A Chapter 13 Bankruptcy is the most common bankruptcy used to stop repossessions. The reason for this is the vehicle and what you are behind can be paid through the Chapter 13 Plan. This allows you to keep the vehicle and catch up what you are behind without having to do so all at once. In some cases, filing Chapter 13 Bankruptcy can even get your car back after it has been repossessed.
If you are facing or fear you will be facing repossession in Knoxville, please contact Cindy Lawson & Associates P.C. at (865) 938-0733 for a free, no-obligation consultation or submit your information instantly by clicking here.
We want to help you get your life back. We offer free consultations and the ability to file your bankruptcy online. We can meet remotely or in person. The choice is up to you.