Stop Repossessions with Bankruptcy:How Your Vehicle Can Survive The “Repo Man”

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Falling behind on payments for any type of vehicle happens to the best of us. Sometimes life deals you adversity that you didn't expect. You don’t have the money for it, but if you put off paying the car payment, you can get some other bills paid, and hope that you can catch up next month. Many validate because it could only cost a late charge. It may start with an unexpected medical bill, or a work related layoff or some situation that no one plans for in the budget.

The problem is trying to explain your situation to your loan company, who don’t really care about personal problems. They are in business for one purpose, to make money. You made an agreement with them and they want their money or they want your vehicle. Your loan company is not going to tell you your legal rights concerning what you can or cannot do in this situation. They are not in the business of solving your problems, they are in the business of collecting the money you owe them. If it comes to it, they will send a bill collector for the money.

Generally, bill collectors are paid based on how much money they collect. In our experience here at Lincoln Law, this means they will say whatever it takes to get your money. This could mean being nice, or they will try and scare the hell out of you. Whatever works to get your money, they will do. If they can’t get your money, they will come after your vehicle.

Bill collectors don't have to wait very long after you miss a payment. Most people think they are fine as long as they are not more than two months behind on the payment. The truth is that your car can be repossessed if you are even one day late on a scheduled payment. So why do some bill collectors wait before sending out the “Repo Man”? The car is not their first choice, but if you don’t give them the payment, they will have your vehicle repossessed.

Once the lender has you car, under law, they can sell it and use the money to pay off your debt. In some cases, they will resell it several times to various people, each time charging plenty of extra fee's for the repossession, paperwork, legal work, the auctioning of the car and any additional fees laid out in the original agreement,. This is in addition to coming back at you for the rest of the money still due on the loan. Some years ago, the show "20/20" ran a story that told how some car dealers make as much as $27,000.00 on a $5,000.00 car.

What they are not telling you is that there are federal laws to protect you in situations that concern your budget, that cause you deep emotional stress, or that leave you with too many bills to pay.

Federal Laws allow you to keep your car, 100 percent of the time, if (1) you file a Chapter 13 bankruptcy, (2) you need the car, (3) the car is not an unreasonably high priced vehicle, and (4) you can afford to pay your required Chapter 13 plan payments. Sometimes, all you need is some help catching up on delinquent payments and Chapter 13 can help with that very problem. In many situations, what you need is to lower the amount you owe on the car and the interest rate on the car loan. In most cases, Chapter 13 will help you accomplish this reduction. Sometimes, you just need to stretch out the payments to lower the monthly payment. Chapter 13 can help you set stretch out your payments. In Chapter 13 using the Central District of California as an example you can pay out a car for up to 5 years. It all depends on your situation. If you are behind on your vehicle payment, complacency is not the answer. You have to act because once the “Repo Man” has your vehicle, it may be too late.

Lincoln Law can do all in our power to help you keep your vehicle. However, sometimes a car is not worth keeping or the car is an extra car you cannot afford. Using bankruptcy in these cases, we can rid you of the car and the entire debt. In other cases, we can help you get rid of the car, and substantially lower the amount you still owe on the car. This can be a tremendous help and a great first step in getting you into another car you can afford.

You have a choice. Lincoln Law can stop the bill collectors calls and stop the “Repo-Man” from taking your vehicle. This all happens as soon as your bankruptcy case is filed. But until you file, there is no protection. If you are behind on your vehicle, act now to find out your options before the “Repo Man” finds you.

This negative experience can turn into a blessing in disguise. The federal laws allow you options to stop the repossession of your vehicle and pay the dealer nothing, by filing a Chapter 7 bankruptcy case. You can also file a Chapter 13 bankruptcy case as well, but only lower your payments to the loan company. Once you get back on the right financial track, it will be that much easier to get back in the fast lane. Start over and free yourself from the debt of vehicle payments by assessing your options. If you are over-burdened with bills and can't make it financially, bankruptcy will help!

Call us and setup a Free Visit, where we can explain everything to you in detail. We can help!

Call toll free 1-800-722-6578

Article Source: http://depositarticles.com/

Utah bankruptcy court - Lincoln Law, one of the nation's leading bankruptcy law firms, has been focused on providing clients with instant bankruptcy relief in Utah. Call toll-free now at 800-722-6578 for a free consultation.

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