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Stopping Repossession


Experienced Rochester, New York Bankruptcy Attorney

If you are behind on your automobile payments, your finance company may no longer believe you are a good credit risk and decide to take aggressive collection action against you. Creditors may repossess your car, truck or motorcycle without giving any advance notice to you. However, the bankruptcy laws do protect filers who want to save their vehicles and other property from repossession. At the Law Office of Ronald S. Goldman, I will explain the options available under the bankruptcy laws that allow you to keep your car, motorcycle, truck or home.

Will Filing for Bankruptcy Stop Repossession?

Yes. If you file bankruptcy, creditors cannot repossess assets (such as a car, boat or trailer).  Filing for bankruptcy immediately gives you an opportunity to catch your breath and figure out what is in your best interest. As your bankruptcy attorney, I negotiate with the creditor and attempt to come to terms with the creditor to enter into a “Reaffirmation Agreement”, which allows you to keep the car and provides for the resumption of payments on that auto loan.  By filing Chapter 13 bankruptcy, your debt will be reorganized and possibly reduced, and you will have the chance to repay that debt over a longer period of time, often times for less money than what you owe for the vehicle.  If you have owned your car for more than 910 days before you file for Chapter 13, the bankruptcy law permits you to repay through a Chapter 13 plan not what you might owe the creditor according to the balance due on the loan, but pay back the adjusted retail value of the car at as low an interest rate of 5.25% interest. This is what is referred to as a “Cram Down,” which is one of the most powerful bankruptcy tools available.

Besides stopping asset repossession, bankruptcy also stops:

 

If your Vehicle Has Been Repossessed. Can You Get it Back?

Yes. If an automobile has been repossessed by a creditor but has not yet been sold, a Debtor can get it returned to him/her by filing Chapter 13 bankruptcy. Usually, creditors will hold the property for at least 21 days. If bankruptcy is filed before the creditor has resold the motor vehicle, a debtor can get the car back, if that is what the Debtor wants. The law permits the creditor who has repossessed the vehicle to be reimbursed for the reasonable costs of the repossession and storage fees.  These fees, however, are often much less than what is owed or past due on payments for the car. Sometimes creditors will release the vehicle to you without requiring reimbursement of those repossession and storage fees. An experienced and knowledgeable attorney like Ronald S. Goldman, will review all your options with you to help you formulate the best possible course of action to protect your interests.

If you are struggling with debt and would like more information on bankruptcy and how bankruptcy can help you get rid of debt, I am here to help. The initial consultation is free and together we will formulate a plan to determine if bankruptcy is right for you. I offer personal attention and my rates are reasonable. Contact my office today online or by telephone at 585-546-7410 to speak with an experienced New York bankruptcy attorney.    

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(585) 546-7410

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  • 45 Exchange Street,
  • Suite #532
  • Rochester,
  • NY 14614

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