If you're struggling to manage your vehicle payments and are at risk of repossession, there's no need to panic. You have options. To see what you can do to stop car repo and get out debt, keep reading.
If you can’t make your car payments, your creditors can repossess the car – which means taking it from you and, most often, selling it at auction. Repo can happen with any vehicle, including trucks, RVs, motorcycles, and more.
Car repo can be a serious problem, because most people use their car to get to work. If you’re already having trouble paying your debts, the prospect of not being able to get to your job can make you even more anxious – and if it results in losing your job, it can in fact sink you into more debt and more financial trouble.
For most South Georgia residents, a car is a necessity for other tasks as well, like buying groceries and taking care of kids. Car repo can make everything difficult.
If you’re facing car repossession, don’t worry. There are options.
First, talk to an attorney today. Even if your car has been repossessed, you usually have a 10-day grace period to get it back. But you have to move fast.
Then, discuss whether filing for bankruptcy is an option for you. If you’re facing a mountain of debts you can’t pay – car loan, credit card debt, medical debt, and more – bankruptcy can be a way to gain financial peace.
When you declare bankruptcy, creditors must abide by what’s called the automatic stay. A wall goes up and all repo efforts must stop. Creditors can’t pursue you or your car.
There are two types of bankruptcy, Chapter 7 and Chapter 13. They do things a little differently, and your attorney will be happy to explain which one is best for you.
Why Is My Car Being Repossessed?
If you have a loan on a vehicle, but can’t make payments, the lender can start repo after a few months. Their goal is to stop their own losses by taking back the vehicle and selling it.
In Georgia, a repo agent or lender does not need to notify you before beginning the vehicle repossession process. The lender also does not need to hold a court hearing.
If your car gets repossessed, it can cost big...putting you in even more debt than to begin with. You need to stop car repo before it starts and costs you even more. Bankruptcy can be a solution.
Can I Hide My Car from Being Repossessed?
It’s never a good idea to hide your car in fear or the repo man. In fact, it’s never good to hide from your debt or financial problems--period. Hiding only makes it worse. You may have to pay fees to hide it, creating more money problems and more headache.
[Here's how bankruptcy protects you and stops creditor harassment.]
There are always solutions and ways to financial peace. There’s no shame in bankruptcy: it can be the best way out of financial difficulty. When you file for bankruptcy, you can often keep your car. You may be able to cancel fees or get a smaller monthly payment, stopping car repo.
What If My Car is Currently at Risk for Repossession?
If you’re currently running from repo agents or worried about losing your car, filing for bankruptcy can help.
The longer it takes lenders to find your vehicle, the more money you may have to pay back to the lender. But as soon as your file for bankruptcy, the lender must temporarily stop repossession of your vehicle. Then, you work out a payment plan in the bankruptcy process.
Can Filing for Bankruptcy Really Help?
The short answer is yes.
Filing for bankruptcy can not only stop car repo, it can also help you get control over other outstanding debts to avoid car repo in the future. When you file for bankruptcy, an automatic stay goes into effect immediately that prevents your creditors from contacting you or harassing you – or taking actions against your vehicle.
Contact Woodall & Woodall for a Consultation
Car repossession can be frightening. Bankruptcy can restore peace of mind. Our attorneys here at Woodall & Woodall can help you determine the best type of bankruptcy for your situation. We’re here to help stop your car from being repossessed and find financial peace.
If you can’t afford to lose your car, give us a call 229-247-1211 or contact us online right away.