A major concern for those facing financial turmoil is losing a car due to repossession. This often happens when you fall behind on your regular monthly payments and the lender exercises his right to take back the car or truck – often with little or no warning. Many people incorrectly believe that they are safe as long as they do not fall more than 3 months behind. This is incorrect. Your lender could repossess the car within 30 days of your payment due date and even less if the process was started previously.
It is important to know that the debt is not gone when the car is gone. You may actually owe more money after the car is repossessed. Although the loan balance would be reduced by the car’s selling price at auction, you are now liable for all collection costs including attorney’s fees, towing, storage, auction expense, late penalties and interest.
You could have a car loan for $20,000.00 and the car could be sold at auction for $7,000.00. You would have a automobile deficiency of $13,000.00 plus other collection fees for a car you no longer own.
If you are falling behind on your car payments and repossession is likely, you must take action immediately. Repossession and all other collection activities will stop immediately upon the filing of your bankruptcy petition. It is still possible to recover the car after its been repossessed, but you need to act quickly. Please call the Law Office of Matthew C. Swanson to see if bankruptcy is right for you.
Let the Law Office of Matthew C. Swanson Help You Today
If your vehicle has been repossessed (or likely to be repossessed), you can’t afford to pass up a free consultation about filing with an experienced bankruptcy attorney. Contact Attorney Swanson today.
The Law Office of Matthew C. Swanson services all of Plymouth County, Bristol County, Norfolk County, and Barnstable County.