bankruptcy lawyers in memphis tn | Darrell Castle & Associates

Stop a Memphis Car Repossession

If you’re at risk of losing your car over bills you can’t pay, don’t give up hope. Fortunately, there’s a way to stop car repossession, and Memphis has trusted our firm to help them do so for over thirty years.

Car repossession steals your time and your joy. Instead of getting to work or spending time with your family, you have to worry about hiding your vehicle or making payments on your loan that feel totally impossible.

We like to say that while Memphis sleeps, the repo man is hard at work. After decades of serving the Memphis area, we’ve seen all their dirty tactics. And we know how to stop it.

How to Stop a Car Repossession in Memphis

You have a few options that can help you avoid repossession.

First, you can always try contacting the bank to negotiate lower payments or calling a debt reorganization group. Just be aware, both of those options can fall through. Neither has the power of federal law behind it. If the bank decides to change its mind, you’re right back where you started.

Bankruptcy works differently. By filing for bankruptcy with a qualified attorney, you can stop the car repossession for good.

Chapter 13 bankruptcy is a debt reorganization plan set up by the courts and written into federal law. When you file, you lump your debts – including your past-due car payments – into an affordable 3-5 year repayment plan.

Once the plan is complete, you’re free of the debt and own your car. And since the courts set up the plan for you, your creditors have to comply.

Depending on your situation, you may also be able to stop a repossession through Chapter 7 bankruptcy, which clears your debts and gives you a fresh start.

A good Memphis bankruptcy attorney will help you decide which chapter is right for you.

Stop Car Repossession: Contact a Memphis Attorney Today

If you’re behind on your car payments, don’t wait. Repos happen in parking lots, overnight, and when you least expect it. I’ve had clients come to my firm in a total panic, having lost their cars while in class or work or even while they slept soundly in bed.

There’s no reason to live in fear like that.

Our Memphis bankruptcy lawyers work overtime when you need it most to save your car and get you out of debt. We work with you to help you afford bankruptcy. And our award-winning staff will treat you with kindness and respect.

Contact us online today or call (901) 327-2100 to talk with one of our attorneys about your situation, free of charge. We can help you figure out your options and get you back on track before it’s too late.

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Frequently Asked Questions | Car Repossession

At Darrell Castle & Associates, our qualified team can help you navigate the challenges of car repossession and help you to stop car repossession in Memphis and make well-informed decisions going forward. 

Will I lose my car if I file bankruptcy?

Bankruptcy can actually help you keep your car. It was created to offer relief to people in debt. But it all depends on your specific situation, including the type of bankruptcy you file, your state’s exemption laws, and the equity you have in the car.

You may be able to keep your car in Chapter 7 bankruptcy – an attorney can help you determine if you qualify. In Chapter 13 bankruptcy, you can usually keep your car. You pay for it as part of your repayment plan, which is designed to be affordable for you. Consult with our experienced bankruptcy attorneys to understand your specific situation and find out the best approach to handle your car in bankruptcy. The conversation is free.

What impact can a car repossession have on my credit score?

Car repossession may have a significant negative impact on your credit score. The exact impact will depend on several factors, including your previous credit history, the number of missed payments leading up to the repossession, and the amount of the loan that was outstanding.

The repossession will appear on your credit report and may remain there for many years from the date of the first missed payment that led to the repossession. The repossession will be marked as a major derogatory event on credit reports, which may cause your credit score to drop significantly and make it more difficult to obtain credit.

Sometimes people worry about their credit after bankruptcy, but in reality, what happens leading up to a bankruptcy (including the threat of repossession) will already impact the score. And after a bankruptcy, there are a lot of ways to increase your score. To help, we offer a free report called Life After Bankruptcy.

Can they repossess my car without notice?

The answer varies by state. In the state of Tennessee, a car can be repossessed without prior notice.

When you finance or lease a car, the loan agreement usually includes a provision that allows the lender to repossess the vehicle if you default on your payments (“defaulting” typically means missing one or more scheduled payments). Once you miss a payment, the lender may have the right to repossess the car without giving you advance notice. This is known as “self-help” repossession.

However, specific laws and regulations related to car repossession can vary by state, so the laws in your jurisdiction will determine your rights and the procedures lenders must follow.

What are my rights during a car repossession?

During a car repossession, you have certain rights that are protected by law:

  • First, your most fundamental right is the right to be free from any threats or physical harm from the repossession agent.
  • Additionally, the repossession agent can’t enter your property without permission, except in specific circumstances, like an open driveway.
  • If you encounter the repossession agent in person, they must identify themselves and disclose the purpose of their visit.
  • You have the right to be informed about any fees or costs associated with the repossession.
  • You should receive notice of the upcoming sale of the repossessed car.

It’s essential you understand your rights during a car repossession. That’s why we offer a free report all about this called Creditors Can’t Do That.

If you believe your rights have been violated during a repossession, report them and seek legal counsel to explore your options. Our free report will show you how.

Can I negotiate with my lender to stop a repossession in Memphis?

It’s possible. If you’re at risk of falling behind on your car loan payments, communicate with your lender as soon as possible.

Be honest about your financial situation and explain the challenges you’re experiencing. Many lenders are willing to work with borrowers to find alternative solutions that can help them keep their car and avoid repossession. Some possible options for negotiation may include temporary payment arrangements, loan modifications, deferment, or forbearance.

By showing a genuine willingness to resolve the issue and finding a mutually beneficial solution, you increase your chances of reaching an agreement with the lender that can help you retain your vehicle and prevent repossession.

However, keep in mind:

  • Your lender doesn’t have to agree to anything.
  • They aren’t bound by the courts like they are in a bankruptcy.
  • Without a binding agreement, they could change their word later, leaving you back in the same place.

For those reasons, bankruptcy is the most surefire way to stop repossession in Memphis.

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