9th Aug 2018

A few months ago, the Federal Reserve reported that an increasing number of Americans are falling behind on their car or truck payments and are in danger of having their vehicles repossessed. The report states that there are 6.3 million people who are at least 90 days late on these payments. This number is an increase of 400,000 over just last year. The majority of these delinquencies come from sub-prime loans at dealerships who self-finance auto loans compared to banks and credit unions.

What can you do if a car lender is trying to repossess your vehicle or if you simply fall behind and can’t get caught up? If you qualify, Chapter 13 bankruptcy can help you stop a repossession and pay for the vehicle over a 3 to 5 year period, often with a lower interest rate. In a bankruptcy, the car lender will stop calling you, sending you collection letters and harassing your friends. Also, it will keep your creditors from repossessing your vehicle. In addition, it will stop any lawsuits or judgments that are pending against you.

If your vehicle has already been repossessed, you must act quickly if you want to reclaim your vehicle through bankruptcy. State law requires car lenders to keep the vehicle for 10 days prior to an auction, but after this time period, there is no guarantee that you will get the car back. It is possible to get it back if it has not been sold at auction, but you should file sooner rather than later. In a repossession case, you will need to pay the repossession and storage costs to reclaim the vehicle. You will also need to show proof of full-coverage insurance.

Another benefit In a Chapter 13 is that you can discharge debts due to credit cards, medical bills, unsecured loans, etc., often only paying them pennies on the dollar through your Chapter 13 plan. This percentage is based upon your income and your assets. If you have higher income or a higher amount of assets, you will pay a higher dividend to your creditors. If you have lower income and a lower amount of assets, you will pay a lower dividend out.

Please give me a call at 281-847-4345. I’ll be happy to sit down with you for a free, no obligation consultation to evaluate your situation and inform you of your different options on taking care of your debt through bankruptcy. You can also send me an email at rkemsley@kemsleylaw.com. I look forward to hearing from you soon.

Rod S. Kemsley
KEMSLEY LAW FIRM, P.L.L.C.
Attorneys & Counselors at Law
505 N. Sam Houston Parkway E., Suite 400
Houston, Texas 77060
Telephone: 281-847-4345
Facsimile: 281-271-8677
Email: rkemsley@kemsleylaw.com

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