Most people have financial problems from time to time. Creditors understand this and are usually willing to work with their customers as long as they aren’t late with their payments very often. However, there are some lenders who are strict about timely payments and will initiate collection actions after a customer is late just one time. Automobile finance companies fall into this category often. It’s important to be proactive with your car loan company if you think you might need to make a late vehicle payment because they may send a truck to repossess your car.
In many cases, money problems are temporary. Unfortunately though, they sometimes last longer than a person expected. You can even expect your creditors to threaten to take action against you if you’re in financial trouble and are unable to make your payments on time. You should know that you do have options other than surrendering your property.
By filing for bankruptcy protection, you can get relief from the calls and constant threats of repossessing your car. In fact, the bankruptcy law may even allow you to get your car back after it is repossessed. You don’t have to hide from the repo man. Simply get in contact with an experienced bankruptcy lawyer to file the necessary paperwork so you can keep your vehicle while your case goes through the court.
Of course, it’s also important to try to avoid repossession in order for not being stranded far away from home or for your kids to have a way home from school. The courts understand that financial problems happen. That is why the bankruptcy code exists.
With Chapter 13 bankruptcy, your debts can be reorganized so you will be less likely to need to make a late vehicle payment. You can expect your overall monthly debts to be less burdensome in order to afford to make the necessary payments on time. While Chapter 13 bankruptcy does not erase your debts like Chapter 7, it allows you to keep your property and maintain your standard of living while you pay off your bills over an extended period of time.
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