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In today's society owning a car is a necessity. You can't care for your children or get to work without one. Maybe you have fallen behind on your car payments and the lender is threatening to repossess. Maybe you have already had a vehicle repossessed and now you're afraid the lender is going to sue you for the money you still owe them. Filing bankruptcy will STOP repossession by your lender. Bankruptcy will also help you deal with collection efforts after a vehicle has been repossessed such as collection suits and wage garnishment . In some situations, if the bankruptcy is filed early enough, bankruptcy can force the lender to return a vehicle that has already been repossessed. This applies to both traditional car loans and title loans. Additionally, you may have an old car that isn't reliable anymore, but you owe the lender much more than what the car is worth. Bankruptcy can help deal with this problem as well if you don't want to keep the car anymore. Scenario One: You still owe the lender $26,000 for your truck. Your monthly payment is $715. You were out of work for three months and have missed a couple of payments. Your credit wasn't perfect when you purchased the vehicle, so you are paying a high interest rate to the bank or car lot. You are now back to work, or a new job is going to start next month, but you can't afford to get the past due payments caught up all at once and you're afraid the truck is about to be repossessed. Chapter 13 bankruptcy law allows attorney Ivan McCullough to file a reorganization plan for you where you keep the truck and pay the loan off through the Chapter 13 Trustee at $488.00 per month going forward at 4.75% interest (or whatever the prime interest rate is when you file your case). You don't have to worry about coming up with the past due money all at one time. Scenario Two: You have had the truck mentioned above for more than 910 days (2 1/2 years) or there is only a title loan on the truck. The truck is now only worth $14,000 despite the fact that you owe $26,000.00. Attorney Ivan McCullough can propose a plan where you only pay back what the truck is worth ($14,000) at $263.00 per month. The lender gets the same amount from you through the Chapter 13 plan payments that they would have received if they had repossessed the truck and sold it at auction. This is true regardless of how much or how little the vehicle is worth. Scenario Three: Your truck, car, motorcycle isn't running good, it's worth much less than what you owe on it, you have another vehicle or you just don't want or need it any longer. Attorney Ivan McCullough helps you file either Chapter 7 or Chapter 13 bankruptcy. The lender gets the vehicle back and once you receive your discharge from the bankruptcy court, you are no longer liable for the car loan. This means that the lender can't now sue you for the remaining balance of the car loan. Call attorney Ivan McCullough for a free consultation to discuss the options in your particular situation. Call (931) 422- 7086 Text (931) 548-6879
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