Thursday, January 10, 2013

Facing Repossession? Bankruptcy Can Help.

I’m Facing Repossession, Can Bankruptcy Help?

If you or a loved one is facing repossession or is behind on car payments, you’re not alone. The economy, job loss, medical bills: these are all common reasons many people fall behind on their car payments and face repossession. When you get behind on car payments, the lender can repossess the vehicle. In most vehicle loan contracts, there are clauses that allow the repossession of your vehicle should you fail to make the scheduled payments. If you have received notice that your car is going to be repossessed, your first step is to contact the lender and arrange to pay the past due amount. However, many people are not in a position to do that, which is when filing a Chapter 13 bankruptcy may be the best option. Chapter 13 can stop the repossession of your vehicle and allow you to pay back the lender over time through a Chapter 13 re-payment plan.  You can probably also reduce the interest rate that you agreed to pay to the lender.  This can save you a lot of money.

If your car has already been repossessed, you may be responsible for the unpaid balance of the loan once the vehicle is sold. If this is the case, bankruptcy may still be the best option for you, as it will protect you from collections, judgments, and possible wage garnishment. Whether you have a prior repossession or are struggling to save your car, King and King bankruptcy attorneys can help.  At King and King, we have helped individuals and families in Georgia save their homes, their cars and their hard earned wages. Having an attorney who knows how to protect you and your property is vital. Call today for your free consultation. 404-524-6400