Louisville, Kentucky, Bankruptcy Law Attorneys
Many people file bankruptcy to stop repossession of a vehicle or other asset. Filing either a Chapter 7 or Chapter 13 bankruptcy will stop repossession under the automatic stay provision of the U.S. Bankruptcy Code. However, this stay is temporary. You will still need to sign a reaffirmation agreement and catch up on your payments to keep the asset. Filing Chapter 13 bankruptcy will give you more time to catch up on your payments – – from three to five years depending on your debt repayment plan.
Another option available to you in bankruptcy is debt renegotiation. For example, if you owe $20,000 on a car that is worth $12,000, you may be able to refinance your care for $12,000. You may also be able to renegotiate the interest rate of your loan.
It is important to act quickly to stop repossession of your asset. It is also important that you don’t miss any payments after filing bankruptcy, or else your lender will have the right to make a motion to vacate the automatic stay and repossess your property. Please note that if you had payments automatically deducted from your checking account, those payments will stop during the bankruptcy, so you will need to make arrangements to make sure your payments are made directly. We recommend that you make payments by check or money order for at least six months after your bankruptcy case is concluded as these forms of payment can’t bounce. We also encourage you to send payments by certified or registered mail, return-receipt requested, so that you have proof of when the lender received it.
If you’re facing repossession, please contact Daniels Associates at 502.583.8300 for a free consultation.