Most Tennesseans would be lost without their car. Whether it’s to get to work, run errands, or take your kids to school, a vehicle is integral to getting through your day. Unfortunately, with record-high unemployment rates and an uncertain economy, it’s easy for anyone to fall behind on their car payments and risk repossession. As a bankruptcy Tennessee lawyer, I know repossession can be devastating.
Fortunately, there is a way to stop car repossession and all the stress that comes with it. And it’s not partial payments or other short-term solutions. The only way to achieve long-term relief is through the debt reorganization offered by bankruptcy.
How bankruptcy can help you
There are a lot of myths and misinformation about bankruptcy, but I assure you bankruptcy is nothing to be afraid of. It can take an enormous amount of anxiety out of your life. If you’re behind on your car payments, chances are you are also behind on other bills like credit cards, medical bills, and other loans. It can be near impossible to catch up on everything at once.
Bankruptcy offers you the financial clean slate you deserve, a chance to rebuild your credit stronger than ever before, and the ability to keep assets like your home and car.
Stop repossession and lower your car payment with Chapter 13 Bankruptcy
There are different types of bankruptcy, and an experienced bankruptcy lawyer can help you decide which type is better for you. But your best chance of keeping your car and reducing your payments is through a Chapter 13 bankruptcy. Filing a Chapter 13 can instantly put a stop to any threat of repossession and can help you catch up on your other bills, as well.
How does Chapter 13 work in Tennessee?
When you file a Chapter 13 bankruptcy, all of your debts, including your car loan, will be lumped into an affordable 3-5 year repayment plan. Plus, once you file, the creditors will no longer come after you.
Typically, much of your debt may be paid back at a reduced rate. This means you not only have more time to pay back your debt, you will be paying a lower amount. This can also be true for many car loans.
What if my car has already been repossessed?
If your car has already been repossessed, the law requires the lender to hold onto your vehicle for 10 days. During those 10 days, the lender must give you the opportunity to recover your vehicle. But this means you must pay off the balance of the loan in full to get your car back. For most people struggling with debt, coming up with that large sum of money is just not possible. After the required 10-day period, the lender has the right to sell the vehicle at auction. If this happens, you will not be able to get your car back.
Luckily, filing for Chapter 13 bankruptcy might help you recover your car – but you need to act quickly.
Talk to a bankruptcy Tennessee lawyer today for FREE
If you’re behind on your car payments, or if your car has already been repossessed, call us at (901) 327-2100 or contact us online today for a FREE consultation. We will discuss your options and come up with a plan that works specifically for you.
Don’t wait and run the risk of losing your car forever. Our experienced bankruptcy Tennessee lawyers are here to help you through every step of the process. It’s our job to get you on track toward a brighter financial future, which is only a phone call away.