Protect Your Vehicle from Creditors
The two assets that most people can least afford to lose are their home and their car. Bankruptcy is a powerful tool that many people have used to keep their home and their car.
If you are at risk of losing your home to foreclosure, visit our stop home foreclosure section to see if bankruptcy can help you protect your home. If your car, truck, motorcycle or other vehicle may be subject to repossession, read the bankruptcy and auto repossession selection below to see if bankruptcy may provide the relief you require.
If you are struggling with debt and want to learn more about bankruptcy, contact B&B Law Group in Lutz, Florida. Our experienced bankruptcy lawyers serve clients throughout the greater Tampa Bay area.
Bankruptcy and Auto Repossession
Chapter 13 bankruptcy and Chapter 7 bankruptcy each provide different types of relief for people at risk of losing their vehicle to repossession. Through a Chapter 13 bankruptcy, you can restructure an auto loan debt or potentially obtain relief through a cram-down:
- Debt restructuring: You can restructure the debt you owe on a vehicle through a Chapter 13 debt repayment plan. Rather than paying the monthly payment you owe currently, you would pay a different monthly payment as part of your three or five year debt repayment plan. You can also use the debt repayment plan to pay any auto payment arrears (late payments) gradually over the length of the plan.
- Cram-Down: If your car loan is more than 910 days old on the day you file for Chapter 13 bankruptcy, you do not have to repay any portion of your auto loan that exceeds the current retail value of your vehicle. For example, if you owe $10,000 on your car loan and your car is only worth $5000, you only have to repay $5000 at a legal rate of interest over the life of your Chapter 13 Plan.
With a Chapter 7 bankruptcy, you may discharge most forms of consumer debt, thus freeing up money to make your monthly car payment.
Chapter 7 bankruptcy and Chapter 13 bankruptcy each provide additional relief through the automatic stay. When your bankruptcy petition is filed with the court, the court will issue an automatic stay order which temporarily halts most creditors — including auto lenders and auto repossessors — from further collection activity.
Contact Our Tampa Bankruptcy Attorneys
To schedule a free consultation with an experienced bankruptcy attorney, contact B&B Law Group at 813-333-9583 or contact us by e-mail.
