Bankruptcy and Your Car

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Car Repossession Attorney, Thousand Oaks, Ventura County

Have you fallen behind on your car payments? Are you receiving demand letters and phone calls regarding your past due payments? If you are delinquent on car payments, or if your lender has threatened car repossession, our firm can help you avoid car repo. At the Ercolani Law Group, we help consumers file bankruptcy and obtain relief from car repossession.

At the Ercolani Law Group, located in Westlake Village, California, we are skilled and experienced at providing counseling regarding asset-protection options, and quickly implementing legal and financial solutions to protect threatened property. Car repossession laws are confusing, and an experienced attorney can often deliver surprising solutions. In many of these cases, it is often most beneficial to file for Chapter 13 bankruptcy. For a free initial consultation concerning your foreclosure and repossession questions, contact our firm.

You Have Options

Chapter 7 Bankruptcy

Filing for either Chapter 7 or Chapter 13 before the car is repossessed can allow you to keep it. In Chapter 7 bankruptcy you have two options. After filing, you can voluntarily “reaffirm” your car loan and continue making payments just as you would have before — provided you can pay any past or overdue payments in full immediately. Your second option under Chapter 7 is called “redemption.” Redemption, in terms of keeping your car, simply means that you can buy the car outright by paying its book value as opposed to the value of the loan. If your loan is $5,000 but the car itself is only worth $2,000 today — $2000 is what you’ll pay. This can save you thousands of dollars.

Chapter 13 Bankruptcy

Chapter 13 provides other options. If you are behind on car payments and do not have the money to pay them off immediately as part of reaffirming your loan in a Chapter 7, a Chapter 13 repayment plan bankruptcy will give you time to pay those off while continuing to make regularly scheduled payments. Chapter 13 also brings the “910 Day Rule” into play. In short, if you are filing for Chapter 13 bankruptcy relief and purchased your car less than 910 days ago (roughly 30 months) — you will have to pay the full value of your loan. However, modifying that loan payment and your interest rate are real possibilities. If you purchased your car more than 910 days ago—you may be able to “cram-down” much like redemption where you essentially pay the book value of the vehicle through your Chapter 13 payment plan and it’s yours.

Contact Us for Your Free Initial Consultation with a Laywer

If your car is going to be repossessed, we can help protect your rights. For more information on stopping car repossession, contact the Ercolani Law Group. Our office is located near the 101 Ventura Freeway in Westlake Village, east of Westlake Blvd, just a short drive from Simi Valley, Woodland Hills, or anywhere in Ventura County. Get a free consultation: email our law office or call 805-338-6880.

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