Stop Repossession And Keep Your Car With Bankruptcy
For many Florida residents, losing their car can significantly affect their lives, including their career opportunities. Your car might be your only means of getting to and from work. Understandably, keeping the car and other essential property is a top priority when debt becomes an issue.
At the Law Offices of K. Hunter Goff, P.A., I focus solely on bankruptcy law. I know how to advocate for clients who face loans with high interest rates and other types of debts. When you need compassionate, experienced representation, call my Orlando office for personalized advice.
Repossession Does Not Guarantee Debt Elimination
Let’s say your car was already repossessed and now you get a letter saying you owe a lot of money on it. How can you owe money on a car you don’t even have anymore?
There is no such thing as a ”voluntary repossession,” in which you would give up the car and not owe anything. Instead, when a car is repossessed for nonpayment, it is sold at auction. The proceeds from the sale are applied to the balance owed, and the amount of debt that remains (the deficiency balance) is what you still owe to the creditor.
However, bankruptcy can halt repossession and potentially eliminate your liability for debt repayment. I help clients evaluate whether filing for bankruptcy may be the most effective solution for their financial success.
Bankruptcy Can Offer Financial Benefits
Filing bankruptcy stops repossession. It’s that simple. What’s not always so simple is keeping the car after the bankruptcy is filed. However, it is still possible. I frequently help my clients safeguard their vehicles. The key is meeting with you, asking the right questions and then developing a plan you’re comfortable with.
For example, you might be current with your payment, but you know you can no longer keep up the payment. In that case, the best route might be to file under Chapter 7, hold on to the car for a couple more months without making a payment and then surrender it through the bankruptcy while eliminating the debt. In a Chapter 7, you may be able to redeem the car. In other words, you only have to pat the market value of the car while eliminating the rest of what you owe.
If you are behind on your car payments and facing an imminent repossession of the car, filing a Chapter 13 could be the better course of action. In Chapter 13, you can also redeem the car if you bought the car over 910 days before you filed the bankruptcy. You could potentially also drastically reduce the interest rate on your car loan.
The best option for you depends on several factors, which I can review to make an informed recommendation. I look forward to guiding you through the decision-making process for not only stopping repossession of your car but also helping you save money on the car loan in the process.
Protect Your Vehicle With Attentive Bankruptcy Counsel
Meeting with an experienced attorney is the first step. When you are ready to find out how I can help you avoid repossession, we can create a plan together. Call 352-432-7003 or send me an email to schedule a free initial consultation.
The Law Offices of K. Hunter Goff, P.A., is a debt relief agency. The firm helps people file for bankruptcy relief under the Bankruptcy Code.