Car Loan Debt and Bankruptcy Lawyers in Burlington County
Can You Afford to Lose Your Car?
Your car is essential to your day-to-day life, such as commuting to work and grocery shopping. For this reason, most people consider their car one of their most important assets, second only to their home. If you fall behind on your car, truck, or motorcycle payments, the creditor is entitled to repossess, or take away, your vehicle.
Luckily, it is possible to save your vehicle by declaring bankruptcy in most cases. If you have started missing vehicle loan payments, or if your vehicle was repossessed within the past ten days, contacting a skilled bankruptcy attorney is likely the best course of action. The bankruptcy attorneys at McDowell Posternock Apell & Detrick, PC have over 80 years of combined experience helping clients save their vehicles through bankruptcy.
Saving Your Car During Bankruptcy
If you decide to declare bankruptcy, the chapter you select will impact what happens to your car. These are your options:
- Chapter 7 bankruptcy– Chapter 7 bankruptcy is meant to wipe your debt clean, so you will have several choices in terms of your car’s future. Your McDowell Posternock Apell & Detrick, PC bankruptcy lawyer will explain the intricacies involved with each option.
- Maintain your car payments and keep the car by signing a reaffirmation agreement with the lender. A reaffirmation agreement may alter the terms of your car loan.
- Surrender the vehicle to the lender, eliminating all your car loan debt.
- Chapter 13 bankruptcy– Filing for chapter 13 bankruptcy will immediately stop the repossession of your car, and you will be able to restructure your payments, providing you with an easier way to repay your car loan debt. Also in a chapter 13, a lawyer may be able to secure a “cramdown,” in which you will pay off the vehicle’s current market value and eliminate the remaining debt.
If circumstances cause you to miss one or two car payments, you may begin to feel the stress of worrying about repossession. As soon as you file for bankruptcy, you are protected by the Bankruptcy Court and the lender may not repossess your car. In fact, creditors will not even be allowed to contact you directly. Instead, your bankruptcy attorney at McDowell Posternock Apell & Detrick, PC will handle these communications and advise you about your vehicle payment options.
Why should I consult a bankruptcy lawyer about my car loan debt?
- Obtain professional assistance to keep your car by declaring bankruptcy and restructuring your payment plan
- Potentially get your vehicle back if it has already been repossessed
- Possible reduction in monthly payments
- Learn the truth about bankruptcy and how it will impact your credit and overall lifestyle.
- Receive assistance rebuilding your credit.
Seek bankruptcy advice with a free phone consultation
Your car is likely one of the most important assets you own. If you have started missing payments, it’s not too late to prevent the repossession of your motor vehicle. The knowledgeable South Jersey bankruptcy attorneys at McDowell Posternock Apell & Detrick, PC can help. Call us or fill out our contact form to schedule a free phone consultation