Phoenix, AZ -- (SBWIRE) -- 07/08/2013 -- It’s bad enough to file for personal bankruptcy. Add having someone’s vehicle repossessed to it, and it’s downright terrible. Credit-yogi.com is here to offer its expertise on car repossession after bankruptcy, including:
- After the Lender Repossesses the Vehicle
- The Automatic Stay
- Negotiate with Financer
- Don’t Want the Auto
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Once the lender has someone’s car, he’ll either hold onto it for a while or sell it at auction. Generally, the auto will be sold within two weeks. If it is not, and that person is dealing with car repossession post-bankruptcy, Chapter 7 bankruptcy may still be able to help. Although Chapter 7 cannot make up the amount owed to a financer, as Chapter 13 bankruptcy can, it can still be helpful to one contending with this situation. Of course, there are always the options of surrendering the vehicle or trying to redeem the car in order to be absolved of responsibility for it.
Automatic Stay can Save the Car
The moment one files Chapter 7 bankruptcy, an automatic stay goes into effect. This can help with car repossession after bankruptcy because it prevents creditors from trying to collect on their outstanding balances. If a lender obtains a court’s permission, it can continue attempting to collect what it is owed. Because of the stay, the lender cannot sell one’s vehicle without requesting approval from the court and sending notice of such an action through the bankruptcy. It then becomes the vehicle’s owner’s decision whether or not to fight for it.
Talk with the Lender
After filing Chapter 7 bankruptcy, one may be able to retain his vehicle by negotiating with the lender. While the automatic stay is in effect, take the time to meet with the lien holder to see if something can be worked out. One will not be in the position of dealing with car repossession following bankruptcy as long as the bankruptcy has not closed, so see if an acceptable payment arrangement can be reached before it does.
No Longer want to Keep the Car
What happens with car repossession after bankruptcy if its owner no longer wants to reclaim the auto? Chapter 7 bankruptcy can help despite his desire not to take the car back. If the vehicle is sold at auction but does not bring in enough to pay off the loan, the financer can come after the borrower for the balance. The left over amount is referred to as a deficiency, and Chapter 7 bankruptcy wipes out any liability one has for deficiencies.
Credit-yogi.com is a full-service, no-charge website whose aim is to supply consumers with up-to-date, bright answers to their fiscal queries by accessing experts in that field. For a free consultation, dial 866-964-9644.