Repossession Attorney in Monterey and Salinas

Keep Your Car Or Truck! Stop the repoman!

Is your Vehicle about to be repossessed?

Bankruptcy can save your car or truck from repossession!

If you have you fallen behind on your car payments attempting to explain your situation to the lender often does nothing to really improve the overall terms of the loan or make it easier to pay down. They may allow for a few late payments but typically not more than that. If the terms are not met, you can be in breach of contract which would allow the lender to repossess your car or other other vehicle and sue you for the deficiency.

Federal bankruptcy laws were created to help you in situations where you are having difficulty in making ends meet.

When a bankruptcy petition is filed, all creditors are immediately prevented from any further attempts to collect on a debt which also means they are not allowed to repossess your automobile (or motorcycle, RV, etc.).

Most vehicle repossessions do not occur until a debtor is at least two months behind on payments. After car payments have become a few months delinquent, a person is in serious jeopardy of having their car repossessed. Chapter 7 or chapter 13 bankruptcy can stop the repossession instantly.

Differences Between Chapter 7 and Chapter 13

If you were to file chapter 7 bankruptcy, you will have to make arrangements with the lender to bring all payments current after the bankruptcy has been filed. The lender will request that you sign a new contract for the loan (called a “reaffirmation agreement”) and, if signed, you will be obligated to remain current on the loan if you want to keep the car.

On the other hand, if you file chapter 13 bankruptcy, the repossession will be stopped and you will have an opportunity to repay the value of the car to the creditor through the chapter 13 plan. Under the right circumstances, chapter 13 is very advantageous if you owe more on your car than it is worth because it allows for a “cram down” of the loan to the value of the car which can lower your monthly payments considerably.

A chapter 13 can be more advantageous than a chapter 7 depending on your situation.

If you are having a difficult time keeping current on your car loan and have an income, you should consider filing Chapter 13 bankruptcy. Call today for a free initial consultation. (831) 224-3199.