When looking into the option of filing a Chapter 7 bankruptcy, one of the primary concerns for many is how to avoid car repossession. Most people realize the need to retain their vehicle and continue making payments on it.
While you could surrender your vehicle if you choose, doing so may wind up causing you bigger problems down the road. If you find that you need to purchase a car later and require a loan, you might find that bankruptcy car loans are not very appealing.
Options for Retaining Your Car During Bankruptcy
Before making any decisions regarding your bankruptcy, make sure to run your case by a Plano law firm. An attorney will be able to advise you on the choices you face in light of your unique circumstances.
You attorney will also counsel you on how to avoid car repossession if you’d like to keep your vehicle. Essentially, if you are current with your payments, you may be able to retain your vehicle in one of two ways either with a lump sum or by making payments.
For the lump sum option, you can pay off the car in one lump sum at its current value, referred to as redemption. For the multiple payments option, you can continue making payments on the car (either in your current contract or by entering into a new contract with the loan provider).
Knowing How to Avoid Car Repossession is Priceless
Keep in mind that when you decide to work with the lender and continue making payments, you have some room for negotiation in bankruptcy car loans. Because the loan provider knows there’s a danger of you surrendering the car (in which case they would receive nothing), some may be more apt to negotiate payout amounts.
These are fairy complex situations, though, so seek legal counsel before moving forward with your Chapter 7 bankruptcy plans. This is especially true in cases in which you’re trying to learn how to avoid car repossession.
Getting Chapter 7 Bankruptcy Help from a Plano Bankruptcy Lawyer
There may be ways to avoid car repossession when you file a Chapter 7 bankruptcy depending on your situation. This issue, as well as many others that arise in bankruptcy cases, may be best handled by legal professionals such as the attorneys at Warren & Migliaccio, L.L.P.
For help at any stage of the legal process – whether you are planning for financial difficulties on the horizon or you are already in the thick of it – our attorneys, led by Christopher Migliaccio is available for free consultations regarding Chapter 7 bankruptcy and how it affects car loans or repossession – 888-584-9614.