This can be a difficult time of the year for many families. You may be having trouble paying your bills, but you still want your family have a great holiday season. This may mean you spend more money than you should, and suddenly it’s easy to find you are facing serious debt problems. There is help.
First, be careful about how you approach your financial situation. Certain car creditors may be more aggressive than others. If you miss a car payment, the lender may repossess your car, which can make a difficult financial position much worse.
If your car is repossessed, the lender can sell the car and use the money to pay off the balance of the loan. If more funds are still owed, the lender can sue you for the outstanding amount. This means you may still be making payments on a car that you no longer have. Your wages can also be garnished in this situation.
If you find yourself in this situation you have options. You can work with your lender to try to find a more manageable payment schedule or other type of loan modification. You can also take advantage of bankruptcy.
Under the “Automatic Stay” in Chapter 13 bankruptcy, any collections or repossession actions against you must stop. This allows you an opportunity to design a plan to meet your financial obligations, including car payments. You will be able to keep certain property, including vehicles, which is extremely helpful.
Filing bankruptcy means you can keep your car and start on the road to a better financial future. The experienced Georgia bankruptcy attorneys at King & King will analyze your specific situation and help you develop a plan that meets your needs. Call us today at 404-524-6400 for a free consultation.