Can Bankruptcy Stop Auto Repossession?
For many people, car payments are one of the most substantial expenses that they pay each month. As such, if times get rough, these payments might be skipped. Although it might make sense to do so to get other more pressing bills paid, it can lead to the repossession of your vehicle after only one to three missed payments. With many Americans relying on a vehicle to get them to and from work, a repossession can cause significant problems. If your car is in danger of repossession, bankruptcy might be the solution for you. Reach out to a North Carolina bankruptcy attorney as soon as possible to learn about your options.
Saving Your Vehicle with a Chapter 13 Bankruptcy
For car owners that are unable to get caught up on their loan or work something out with their lender, filing Chapter 13 bankruptcy might be a better option. You should discuss both options with your North Carolina bankruptcy attorney to determine the best choice in your own situation. In Chapter 13 bankruptcy, the automatic stay also applies when the petition is filed. If the judge approves your debt repayment plan, you will pay your car loan arrears within that plan. As long as you are paying your lender as agreed each month and paying your Chapter 13 repayment plan, the lender cannot repossess your vehicle. If you fall behind on either payment, the lender can once again pursue repossession.
Call a Skilled North Carolina Bankruptcy Attorney Today for Help Keeping Your Car
If you are behind in making payments against your car loan, time is of the essence. You must act as soon as possible if you want to keep your car. If you think bankruptcy might be the right solution for you, do not procrastinate. Schedule a bankruptcy consultation with an experienced North Carolina bankruptcy lawyer at King Law Firm today by calling (800) 635-1683 or use our convenient online contact form.