Repossession Attorneys in Morristown
Serving Morris County and the Surrounding Area
Many people choose to explore their debt relief options when they are no longer able to make their monthly auto loan payments or their lender repossesses their vehicle. Others avoid taking action because they are worried about losing their cars should they file for bankruptcy. Without reliable transportation, commuting to work and meeting family or social obligations can become extraordinarily challenging. Fortunately, the U.S. Bankruptcy Code contains provisions designed to keep debtors in their vehicles and on the road.
At Ast & Schmidt, P.C., we understand how important it is that you keep your vehicle. We know how to navigate bankruptcy in a way that advances your best interests and secures what you need for a successful future. If you are looking for attorneys with decades of combined experience in bankruptcy law, we are the team for you.
Are You Worried About Losing Your Car?
When you file for personal bankruptcy, an automatic stay ends all collection attempts from your creditors. It will prevent auto financing companies from repossessing vehicles, even when loans are seriously delinquent.
If you file for Chapter 7 bankruptcy, you will likely be able to keep your vehicle under the personal property exemptions. If you choose to file for Chapter 13 bankruptcy, lenders may not repossess your vehicles if you include arrears in the Chapter 13 payment plan and make all payments on time.
The bankruptcy laws were not written to punish misfortune or poor decisions. Our experienced repossession attorneys in Morristown can explain how these laws might allow you to keep your car while offering you the fresh start you need and deserve.
Has Your Lender Already Repossessed Your Car?
Finance companies generally sell repossessed vehicles and apply the proceeds to the outstanding loan balance. If you have filed bankruptcy, the automatic stay requires your lender to obtain court permission before selling your vehicle.
This puts lenders in a difficult position and provides debtors with numerous options, including:
- Negotiating with the bank. When facing an automatic stay, lenders may modify the terms of your car loan and lower the payments to avoid going to court.
- Redeem the vehicle. Under the Bankruptcy Code, debtors can choose to repurchase their repossessed vehicles for their fair market values. This may be a prudent choice if you owe money on a car that has heavily depreciated.
- Include your auto loan arrears and monthly payments in a Chapter 13 payment plan. As long as you make payments on time, lenders cannot repossess a vehicle covered by a Chapter 13 payment plan.
End the Anxiety and Get the Answers You Need
Repossession can instantly worsen a difficult financial situation, but pursuing debt relief by filing a personal bankruptcy could prevent this entirely. If you would like to learn about the options you have when your vehicle has been repossessed or learn how an automatic stay could help you keep your car, we are fully prepared to address each of your concerns. With 30+ years of combined experience, we have an in-depth understanding of your rights, creditors’ tactics, and bankruptcy law.
Our team of bankruptcy attorneys at Ast & Schmidt, P.C. can take the right actions to help you achieve relief from crushing debt. We promise you, there is a light at the end of the tunnel.