It’s the middle of the night. Paul and Kim, a hard-working couple who have fallen behind on their car payments, are fast asleep. The repo man, however, is hard at work. When Paul and Kim wake up, they will find that their car is gone. They immediately report the car stolen and check the impound list, but it isn’t there.
This is a real scenario, based off of an actual client case I worked on earlier in my career as Memphis repossession attorney. Paul was getting calls from their car company for a while, but he didn’t grasp the severity of the threats. He was sick and unable to work, too, so he couldn’t get back on his feet to pay off the debt although he wanted to.
Filing Chapter 13 and Repossession
I filed a Chapter 13 bankruptcy for Paul and Kim. I demanded the return of the car, which was quickly granted. I consolidated all of their debts, including the car, into a monthly payment they could afford. With more cash flow, the family got back on their feet, and eventually Paul returned to work.
Chapter 13 lumps your debts — including past-due car or mortgage payments — into an affordable, 3-5 year repayment plan. It has the power to stop both repossession and foreclosure. In some cases it can stop both at the same time.
Another benefit of Chapter 13
Chapter 13 bankruptcy can also stop you from paying more than the value of your car. The courts will base your new payment off of the market value of the vehicle today. So if you bought a car for $20,000 but now it’s only worth $13,000, you could lower the monthly amount to reflect the difference.
Our attorneys in Memphis TN stop repossession – get help today.
The story I mentioned above has played out thousands of times through my career as Memphis repossession attorney. Most of the time, I help them before the car gets repossessed. I can do the same for you.
Financial hardships are stressful and emotionally exhausting, but there is always hope. Call (901) 327-2100 today or contact us here for a free consultation. There’s no need to put yourself through the heartbreak and headaches of car repossession when there’s an easy way out. We will help you get back on track before it’s too late.