There are many who don’t realize they have said yes to the repossession of their vehicle in the loan agreement they signed when it was purchased. This agreement to repossession allows the lender to take the vehicle if the person falls behind on their payments. Many people rely on their vehicle each day to get back and forth to work and to take care of other responsibilities. Having the vehicle repossessed can be costly and extremely stressful. However, a repossession lawyer may be able to help anyone facing these situations. They may also be able to prevent the repossession from taking place.
Regardless of if a person decides to file a chapter 13 or a chapter 7 bankruptcy, there are a number of alternatives to resolving or halting a repossession and providing debt relief. Once the petition for bankruptcy has been filed, all the collections from creditors have to be stopped, which includes any attempts to repossess a vehicle.
During the bankruptcy process, the person may be able to return the vehicle, completely eliminating the auto loan debt. The repossession lawyer hired may suggest this action if the person is far behind on their auto payments. During a chapter 13 bankruptcy, it is a possibility to pay the amount owed in back auto payments in a period of three to five years. In a number of bankruptcy cases, the lender will reduce the amount that has to be paid on the auto loan, but this is determined on a case by case basis.
It is important to find a lawyer who fully understands repossession law and how it applies to a certain situation. Take the time to have a lawyer review the situation to see what legal avenues can be taken. This will ensure the best possibility of a favourable outcome and the avoidance of repossession.
For more information about reducing the potential of a vehicle repossession, visit Stlbankruptcyfirm.com. Take some time to learn about all the options that are available to make the best decision regarding the situation. A lawyer will be able to provide quality advice and help to ensure the desired outcome is achieved. While there are no guarantees, hiring legal representation is the best course of action.
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