Stop Car Repossession: Get Help Keeping Your Car
In many financial circumstances, creditors go after the debtor’s vehicle as a means of debt collection. If you fall behind on payments for your car or other financed items, you may face repossession. This can be one of the most embarrassing and frustrating circumstances to face. Missed vehicle payments may have resulted in a disastrous situation and made managing your life difficult. Bankruptcy attorneys specialize in helping people in difficult financial situations. One way they can assist is by stopping car repossession.
Stopping repossession is a legal practice that involves using bankruptcy laws to protect your car from being taken away by the lender. If you’re behind on car payments and worried about repossession, a bankruptcy attorney can help you understand how to stop this.
Quick Summary:
- Falling behind on car payments can lead to repossession. Signs to watch for include missed payments, past due notices, and repo men lurking around your car.
- Filing for Chapter 7 or Chapter 13 bankruptcy can help stop car repossession in North Carolina through a court order called an automatic stay.
- Chapter 7 may eliminate some car loan debt, while Chapter 13 allows you to create a repayment plan to catch up on missed payments and keep your car.
- A Charlotte bankruptcy attorney can help you understand your options, negotiate with lenders, and protect your rights throughout bankruptcy.
What is Car Repossession?
Car repossession happens when you fall behind on your car loan payments, and the lender takes back your car. It’s a serious situation that can leave you without a vehicle and make it harder to get around.
What Happens During Repossession?
If your car gets repossessed, the lender can take it from your property without your permission. They can tow it from your driveway, workplace, or parking lot. Once they have your car, they will hold it in a storage facility.
Here’s what happens next:
- Selling Your Car: The lender will eventually sell your car at an auction to recoup the money you owe on the loan.
- Deficiency Balance: If the sale of your car doesn’t cover the entire loan amount, you’ll still be responsible for the remaining balance. This is called a deficiency balance.
Car repossession can be a significant setback. To avoid this situation, it’s important to take action if you’re behind on your payments.
Can Filing for Bankruptcy Stop My Car from Being Repossessed in North Carolina?
Filing for bankruptcy in North Carolina can help prevent repossession of your car. When you file, a court order called an “automatic stay” goes into effect. This stay temporarily halts most collection efforts from creditors, including repossession.
There are two main types of bankruptcy that can help with car repossession: Chapter 7 and Chapter 13. Here’s a breakdown of how each can help:
Chapter 7 Bankruptcy:
Chapter 7 bankruptcy eliminates some unsecured debt, including a portion of your car loan debt. However, there are limitations on how much car loan debt you can discharge in North Carolina. Even if you can’t discharge your entire car loan, filing for Chapter 7 can still stop the repossession process, giving you breathing room.
Chapter 13 Bankruptcy:
Chapter 13 bankruptcy allows you to create a repayment plan to catch up on missed payments and keep your car. The plan typically lasts 3-5 years and requires you to pay back all or a portion of your car loan debt and other debts through monthly payments to a court-appointed trustee. You get to keep your car if you complete your Chapter 13 plan.
Which Chapter is Right for Me?
The best chapter for you depends on your specific financial situation and goals. Here are some general guidelines:
- Chapter 7: A good option if you have a lot of unsecured debt and don’t have the income to keep up with your car loan payments.
- Chapter 13: A good option if you want to keep your car and have a steady income to afford a repayment plan.
It’s important to act quickly. The automatic stay from bankruptcy filing only applies to future actions, not past repossessions. If your car has already been repossessed, you may still be able to get it back, but the process is more complex.
How Can a Bankruptcy Attorney Help Me Stop Car Repossession?
Facing car repossession can be stressful and confusing. A bankruptcy attorney can be a valuable ally in this situation. Here’s how they can help:
- Understanding Your Options: Bankruptcy laws are complex, and an attorney can explain your options under Chapter 7 and Chapter 13 bankruptcy in North Carolina. They can help you decide which chapter is best suited to stop repossession and keep your car.
- Stopping the Repossession Process: A court order called an “automatic stay” goes into effect once you file for bankruptcy. This stay immediately halts most collection efforts, including repossession of your car. Even if your car has not been taken, an attorney can file the necessary paperwork to trigger the stay and prevent future repossession attempts.
- Negotiating with Your Lender: In some cases, an attorney may be able to negotiate with your lender on your behalf. They can work towards a solution that allows you to catch up on missed payments and keep your car.
- Understanding Repossession Laws: Specific laws govern repossession procedures in North Carolina. An attorney can ensure your lender follows the proper steps and fights unfair practices.
- Completing Bankruptcy Filings: The bankruptcy filing process involves paperwork and court appearances. An attorney can guide you through the process, ensuring everything is filed correctly and on time.
- Protecting Your Rights: An attorney can protect your rights throughout the bankruptcy process. They can answer your questions and address any concerns you may have.
Considering the Costs:
While hiring a bankruptcy attorney will involve some upfront costs, it can save you money in the long run. They can help you explore all your options and find the most cost-effective solution to stop repossession and keep your car.
Why Do I Need a Charlotte NC Bankruptcy Attorney?
Facing car repossession or overwhelming debt can be overwhelming, and the idea of adding legal fees to your financial burden might be tempting. However, trying to navigate bankruptcy law on your own can be a risky proposition. Here’s why a Charlotte bankruptcy attorney is essential for a smooth and successful bankruptcy process:
- Negotiating with Creditors: Creditors may be relentless in their collection efforts. An experienced attorney can negotiate on your behalf and get you better terms.
- Understanding Eligibility: Your specific financial situation determines whether you qualify for Chapter 7 or Chapter 13. An attorney can assess your eligibility and advise you on the best path forward.
- Protecting Your Assets: Bankruptcy laws allow you to exempt certain assets from liquidation. An attorney can ensure you maximize these exemptions and protect your belongings.
- Experienced in North Carolina: Bankruptcy laws vary by state. It is important to choose an attorney with experience handling cases, specifically in North Carolina. They will be more familiar with local court procedures and the nuances of state law.
Remember, you’re not alone. Many people in Charlotte have faced similar financial challenges. A qualified bankruptcy attorney can guide you through this process and help you get a fresh start.
Call our Bankruptcy Attorney in Charlotte Now!
At the Law Office of Jack G. Lezman, PLLC, we have the tools and experience to guide you through this difficult circumstance. When you file for bankruptcy, repossession actions will immediately have to cease. This will give you the time and opportunity to resolve this issue. Whether you file under Chapter 7 or Chapter 13, all actions from creditors will stop, including harassing phone calls. There are specific actions that you can take to be able to keep your vehicle or other item that was repossessed.
The first step is to have one of our Charlotte bankruptcy attorneys evaluate your situation. We can help determine the best course of action to follow. We can help you get an automatic stay, a temporary solution to your repossession. It allows you the necessary time to solve the debt issue. The Charlotte bankruptcy lawyer that you choose can make all the difference. We can take action to negotiate with your lender to establish a probable and workable solution. It is important to do whatever it takes and to assess each opportunity.
Our firm can help you obtain the time to handle your overdue payments or have them forgiven. Each individual’s circumstance is different, so a personal evaluation is essential. Contact the Law Office of Jack G. Lezman, PLLC, today to speak with one of our personable Charlotte bankruptcy attorneys!
