Experienced Morristown Repossession Attorney
Representing Clients in Morris County and Surrounding Areas
Many people explore their debt relief options when they are no longer able to make monthly auto loan payments. They may need help after a 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 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. We can also secure 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 stop car repossession from auto financing companies, 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, lenders may not repossess if you include arrears in the payment plan. You also need to make all payments on time for your Chapter 13 payment plan.
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. We can help you with 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:
- Bank negotiation - When facing an automatic stay, lenders may modify the terms of your loan, lowering payments to avoid 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 lost value
- 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. We can help you with your options after repossession or with how an automatic stay could help you keep your car.
At our Morristown law firm, 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.