You’ve fallen behind on your bills and your car creditor won’t wait. It’s just a matter of time before you’re facing repossession of your car or truck. And then what will you do without a vehicle?
There is a solution. Chapter 13 Bankruptcy prevents repossession with the automatic stay and gives you a chance to pay the auto loan over time (from 36 – 60 months), even if you are behind on the payments.
St. Louis Repossession Prevention Attorney
If your car is worth less than the total balance of the loan, you may be able to avoid having to pay the unsecured portion of your loan forever. They call this “cram down” or “lien stripping” in bankruptcy. And if available to you, it will allow you to reduce the total debt that you will have to pay for your vehicle.
Chapter 7 Bankruptcy also imposes the automatic stay, temporarily preventing a repossession, and gives you an option (and a little bit of time) to “redeem” your vehicle. If your car or truck is worth less than the loan balance, you may be allowed to pay this lower amount and have the car lien released.
But if you cannot afford to pay one lump sum to redeem your vehicle in a Chapter 7 bankruptcy case, your best bet for keeping your vehicle, if you’re behind and can’t otherwise catch up fast, is the Chapter 13 Bankruptcy case. It will give you time to pay, often lower, regular monthly payments. And because the automatic stay prevents collection activity, your car or truck won’t be repossessed in the process.
Missouri Debt Solution Law Firm
If you’re behind on your bills and need help to catch up, contact me online or by phone at (636)536-5355. The initial consultation is offered free of charge. Why wait, call today.
Nancy Martin is a St. Louis, Missouri attorney and consumer bankruptcy lawyer who helps people file Chapter 7 and Chapter 13 Bankruptcy. To find out more about bankruptcy and other debt relief alternatives, contact us online or by phone at (314) 721-2525. The office is located at 150 North Meramec Avenue, Suite 400, St. Louis, Missouri 63105.
We help people in St. Louis, St. Charles, Chesterfield, Ballwin, Creve Coeur, Maryland Heights, Ladue Manchester, Kirkwood, Webster Groves, Wildwood, Bridgeton, Fenton, Eureka, Ellisville, Des Peres, Clarkson Valley, O’Fallon, St. Peters, Clayton, Olivette, Warrenton, Florissant, Hazelwood, and Frontenac. This includes the municipalities within St. Louis County, St. Charles County, Jefferson County, Franklin County, Warren County and Lincoln County.