Once the economic recession of 2008 started, most people who weren’t living on an already substantial income were hit hard. In fact, any Sacramento bankruptcy lawyer can also attest to the fact that they’ve seen numerous formerly well-off clients, many of whom had amazing jobs before the bottom fell out, end up in the unemployment line. One of the most difficult things that can happen due to financial difficulties is auto repossession, but fortunately, a bankruptcy lawyer in Sacramento can often help.
Temporarily Prevent Repossession
The best way that a bankruptcy attorney can help prevent auto repossession, and even stop creditor harassment on the part of the dealership, is by simply filing for bankruptcy. Once a Chapter 13 or Chapter 7 bankruptcy discharge has been filed, an automatic stay is granted.
This automatic stay means that a creditor can make no attempts to collect a debt until the bankruptcy issue is resolved in court. Sadly, these creditors can file a motion to relieve themselves from the automatic stay, and this will allow them to repossess.
Fighting Repossession during Chapter 7
There are ways for creditors to take a car even during bankruptcy, but fortunately, an attorney can help in these situations as well. A Sacramento bankruptcy lawyer, for instance, can negotiate with a lender.
Sadly, this may not always work if a person doesn’t have the funds to pay off what they owe. In other cases, however, the lawyer can “redeem” a vehicle. This means the owner will own the car by simply paying for what it’s worth. This is a good option if the debt owed is larger than the value of the vehicle.
Getting the Vehicle Back
In some instances, a creditor will have repossessed a vehicle before the owner decided to file for bankruptcy. In these instances, a bankruptcy attorney can negotiate repayment of what’s owed and also set up a repayment plan. This can sometimes get a person’s vehicle back even after it’s been taken. The best chance a person has at this is likely filing Chapter 13, but this should definitely be discussed with an attorney first since all cases are different.
Speak with a bankruptcy attorney today and find out how getting a fresh start is as easy as pressing the restart button! Call now 916-446-1791