Getting behind on an auto loan can be very troubling. If a debtor is more than a couple months behind on an auto loan, they could be taking some serious risks. A car could be repossessed by the entity holding an auto loan, leaving the debtor to pay the difference between the value of the car and what they owe. If that happens, their credit score will suffer more than it has to, and it will adversely impact their lifestyle in several ways.
If your car is a crucial source of personal transportation or you need it to perform your job, risking it to repossession could be a devastating mistake. At the Law Office of Stephen Ross in Pottstown, our Pennsylvania bankruptcy lawyers work with our clients to examine their full financial situation and how their auto loan factors into abilities to pay other debts, maintain financial stability and sustain a lifestyle with discretionary income.
If you are behind on your auto loan, you may have several options in bankruptcy, and we will help you determine the best option for your particular situation.
Protecting Your Car in Bankruptcy
Falling behind on an auto loan is not the end of the world, but you may have few other options than bankruptcy if you are more than a couple months behind on payments. Filing Chapter 13 bankruptcy allows you to protect your property, get caught up on loans and other debts.
The actual value of a car or truck is often below what a debtor currently owes on the vehicle. The experience and knowledge of our Pottstown auto loans attorneys in these situations allows us to negotiate with your lender to potentially cram down the loan value to the current value of the vehicle, which should be a more manageable and reasonable level. We will help you develop a loan workout plan that you can afford, which will allow you to keep your vehicle as long as you stick to the payment plan.
Discharging Debts and Deficiencies on Your Car
If you do not intend on keeping your vehicle, we can help you declare a Chapter 7 bankruptcy. The advantage of Chapter 7 is that the filing discharges the difference between the value of your car and the amount you owe (also known as the deficit or deficiency). If your car is repossessed, it will often sell at auction for less than it is actually worth, leaving you on the hook for paying the deficit. By declaring Chapter 7, you are relieved of the responsibility for paying for the deficit.
Contact Our King of Prussia Bankruptcy Attorneys Today
Our attorneys are ready to discuss your concerns and provide answers to your unique situation. Contact our Pennsylvania debt relief law firm today to learn more about what we can do to help you overcome your legal troubles at 610-323-5300 | 800-799-1948.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
