Solution For Car Repossession after Bankruptcy Hire Right Firm to Ensure Your Car With Best Services

MARIETTA, Ga. - Aug. 12, 2013 - PRLog -- Who would ever think that car repossession after bankruptcy could be a problem? Apparently, many people, so Credit-yogi.com is here to share its knowledge of this subject, including:

·         When the Bank Repossesses the Car

·         Chapter 7 Bankruptcy

·         Retrieving the Car Post-Bankruptcy

·         If Auto is Unredeemable…

Repossession Defined

What happens with car repossession post-bankruptcy? Well, the lender that repossessed the vehicle will keep it for a very short time, and then will most likely sell it. The speed at which the car will be sold depends on both the lender and state law. Generally, though, it is sold within a couple of weeks. Chapter 7 bankruptcy cannot help at all if the car has already been sold, but it can delay or prevent the sale if one alerts the lender quickly after filing.

Chapter 7 can Help

Filing for personal bankruptcy is emotionally taxing, but it can prevent car repossession after bankruptcy. The instant one files for Chapter 7, an automatic stay goes into effect. This stay prevents creditors from pursuing collection attempts without a court order. Since it can take weeks to obtain such an order, most financers do not follow this path. This, in turn, means that the lender can’t sell one’s car without the express permission of the court. While the lender is waiting for that, one can be figuring out ways to pay off what he owes on the loan and get his car back.


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Post-Bankruptcy Auto Retrieval

There are several actions one can take pertaining to car repossession post-bankruptcy that will result in one getting his car back. One is to go talk to the lender and try to negotiate a resolution to the situation. Chapter 7 bankruptcy does eliminate one’s liability on the car loan, so the lender will be more inclined to work with one to clear up the arrearage. The financer may even agree to modify the loan so the payments are lower, but liability for it must revert to the borrower.

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The Unredeemable Auto

With car repossession after bankruptcy, what happens if one doesn’t have the funds to redeem the car loan? If this is the case, file for Chapter 13 bankruptcy instead of Chapter 7. Filing Chapter 13 before the lender sells the vehicle can force the financer to return the car to one’s possession and allow one to pay off the balance of the loan through his debt repayment plan over the coming 3-5 years. If one does not wish to retain ownership of the automobile, he can file Chapter 7 and have the delinquent amount discharged under the bankruptcy.

 

Credit-yogi.com is a cost-free, reputable website whose goal is to provide consumers with correct, current replies to their questions of finance. For a free initial consultation, dial 866-964-9644.