The risk of having your car or truck repossessed is very real if you are behind on payments or if you used the vehicle as collateral for another loan you are having trouble paying down. If your car is repossessed, it can be very difficult to get it back. You have to act quickly. Usually, repossessed cars are sold at auction within 10 days and sold for far less than their actual value. Additionally, you can be charged the difference between the resulting sales price of the vehicle and its value in a deficiency judgment. For several reasons, it is crucial to consult with an experienced Pennsylvania bankruptcy lawyer to understand your options and protect your interests.
At the Law Office of Stephen Ross, our Pottstown car repossession attorneys will fully examine your specific financial situation and provide you with knowledgeable counsel and representation in debt relief. The benefits of an attorney's advice in this situation can save you money, and we can work aggressively to get your car back before it is sold.
Quick Action Is Top Priority
If the person or entity in possession of your vehicle is notified within the 10-day window prior to its sale at auction, we could potentially use Chapter 7 or Chapter 13 bankruptcy to get your car or truck back. Creditors are required to notify you before they can sell your property, but bankruptcy must be filed within a 10-day window to stop repossession and subsequent sale.
Vehicle Exemptions
We can work to prove that your vehicle is vital for your livelihood. If you need your car to get to work or to perform your job, we may be able to claim a bankruptcy exemption on your vehicle.
Deficiency Judgment Protection
If you are in arrearage on your auto loan, you likely owe more on the vehicle than it is actually worth. This creates a deficiency in the amount the vehicle can sell for and the amount you owe. In a deficiency judgment, which follows repossession and sale, you will owe this difference.
Discharging the Deficiency
If you file for Chapter 7 or Chapter 13 bankruptcy, you can actually discharge the deficiency as unsecured debt if your car is repossessed and sold. However, Chapter 13 allows you to catch up on your loan arrearage and keep your car with a more reasonable, negotiated loan workout plan, in which we may be able to cram down your debt to the current value of the vehicle. Chapter 13 offers more protections for your property.
In either Chapter 7 or Chapter 13 bankruptcy, an automatic stay can be placed on your vehicle, preventing the lender or creditor from seizing your vehicle or pursuing a deficiency judgment altogether.
Contact Our Plymouth Meeting Stop Repossession Attorneys Today
Our attorneys are ready to discuss your concerns and provide answers. 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.
