Bankruptcy and Car Repossessions in Western Tennessee
Dealing with car repossession may not be the worst part of a financial crisis, but it is often a strong, immediate sign that you need to take serious action. If you are behind on car payments and cannot catch up — or if your vehicle has just been repossessed and you are wondering if bankruptcy can help save it — please contact attorney Jonathan Garrett in Memphis.
Repossession of Your Car Can Be Sudden and Alarming
Unlike a home mortgage foreclosure, people often do not get a lot of direct warning before car repossession. The lender can initiate repossession of your car as soon as you go into default on the loan, and you will likely have a very limited time to take action and get it back once this happens.
When facing a probable or threatened repossession, the action you decide to take may depend on factors like:
- How much equity you have in the vehicle
- How important this specific vehicle is in your life, including your ability to work and generate income
- Whether you feel you can catch up on payments and afford this vehicle for the longer term
What If You File Bankruptcy?
In most cases, filing bankruptcy will immediately — but temporarily — stop the threat of auto repossession, giving you time to make important decisions about your car and your overall financial situation. However, we do not recommend making such a major financial decision without taking a hard look at all your legal options and all the potential consequences.
A Chapter 13 bankruptcy filing can enable you to regain possession of a car or work out a debt repayment plan of up to five years. If you file Chapter 7 bankruptcy, a range of factors will have to be considered to determine whether you can keep your vehicle. Especially if you have substantial equity in the car, we can help you look at all viable options.
Important Bankruptcy Information, Free in Memphis
At the Jonathon Garrett Law Firm, we will respond quickly if you need to talk to a lawyer about car repossession and your legal options. For a free, informative consultation about bankruptcy, contact our office today.
We are a debt relief agency. We help people file for relief under the Bankruptcy Code.
