If your car has been repossessed, bankruptcy may be a good solution.
My clients don’t plan to file bankruptcy. They usually come to me after several years of trying to make ends meet. They’ve gone through a divorce, become unemployed, or had to deal with a medical emergency for which they were uninsured. Eventually, they have to make choices about which bills they’re going to pay. They have to decide between keep a roof over their family’s heads or paying off credit card debt. Sometimes they have to decide that they can no longer make their car payment. Unfortunately, letting a lender repossess a car doesn’t mean they won’t want any money.
More than once I’ve gotten a call from someone after a recovery company has towed their car away and they’ve gotten served with a lawsuit from their lender looking to them to pay up. When a lender repossesses a car, they’ll put it on the auction block and try to resell it. When they get paid, they’ll apply what they get to the amount you still owe on your loan. If there’s anything left to pay, they’ll come after you for the rest. And they’ll add other costs, like storage, and auction and repossession fees. You might be left owing just as much as before they took your car. If you can’t pay them this deficiency, you can expect to see a summons for a lawsuit sooner than later. Once they get judgment, and they will, they can garnish 25% of your paycheck and vacuum out your bank account.
Filing Bankruptcy After Your Car Is Repossessed
Bankruptcy can stop them from trying to collect this money from you. The second your bankruptcy attorney files your petition, the lender has to stop all collection activity. The creditor can’t call you. They can’t sue you to get what they think you owe. If they’ve already sued you and gotten judgment, they can’t garnish your paycheck or your bank account once your bankruptcy has been filed. Bankruptcy will allow you to discharge (eliminate) credit card debt, medical bills, car loans, mortgages, and other common types of debt. Keep in mind that bankruptcy won’t get rid of alimony, child support, court restitution, some income taxes, and few other things.
Talk To An Experienced Denver, Colorado Bankruptcy Lawyer
If you’ve been trying to make ends meet and have felt like your financial life is out of control, bankruptcy can put you back in the driver’s seat. We offer free consultations which are no-obligation and completely confidential. You can use our online scheduling system to make an appointment that is convenient for you or call 303.331.3403 to talk with an experienced Denver, Colorado bankruptcy lawyer.
Check out our client reviews from Google, Facebook, and Avvo!