Using Bankruptcy to Solve Car Repossession Problems
At Affordable Bankruptcy, our concentration on bankruptcy for clients throughout eastern Missouri means that we have a detailed understanding of what bankruptcy can and can't do for our clients in specific situations. Our ability to help our clients avoid motor vehicle repossession through Section 722 redemption financing is an important example of the ways our in-depth knowledge and experience can benefit you.
Call 866-793-6347 to learn how you can avoid repossession of your car
Contact a lawyer at Affordable Bankruptcy to learn how you might be able to keep your car and refinance it at significant savings in Chapter 7.
Most of our clients face multiple debt pressures — mortgage, credit cards, medical bills and car payments. It's not unusual for our clients to be behind on all of these at the time they file for bankruptcy. Although car payments are not usually the worst of our clients' debt problems, the prospect of a $12,000 debt secured by a vehicle worth only $7,000 can present difficult practical problems.
Basically, you have three options: reaffirm the debt with your lender and continue your payments, surrender the vehicle after you file for bankruptcy and avoid the need to pay the difference between the value of the car and what you owe on it, or redeem the vehicle under Section 722 of the Bankruptcy Code.
Section 722 redemption takes advantage of the right to pay the creditor the fair market value of the car in order to take care of the full indebtedness. That's a great deal for the debtor, provided that the car's worth keeping and you can get the financing to buy out the creditor.
We know how to find lenders who specialize in Chapter 7 motor vehicle refinancing. In most cases, this means that your monthly payments will be significantly lower, and you get a discharge on the difference between your loan balance and the value of the car or truck.
If your car loan is on the repo list, you stand to benefit from the advice of an attorney who can let you know whether Section 722 redemption makes sense in your situation. For further information, contact Affordable Bankruptcy for a free consultation in St. Louis.
