If I File for Bankruptcy, Will it Stop Repossessions?
Dealing with repossession can be a constant fear in people’s minds, especially those in debt, to the point of affecting their health. However, contacting a bankruptcy attorney Taylorsville Utah, can help to alleviate that stress and allow you a fresh start.
Filing for Chapter 13 bankruptcy Can Help
Vehicles are the most prevalent encounter with repossession, which a bankruptcy filing in Utah can help prevent.
Most individuals finance their automobiles with debt, and with obligation comes the responsibility to pay it back. If you don’t pay, the Repo Man will come after you. However, allowing your attorney to help you file for bankruptcy will stave off repossession.
One of the most severe issues with having your car seized is that you usually owe more than the vehicle’s value. To make matters worse, the bank sells your car for whatever it can get. As a result, not only will you forfeit your vehicle, but you’ll also be responsible for the loan balance after the lender auctions it.
Allowing this to happen to you is not a good idea. Our Utah bankruptcy attorney will help you create a plan to stop repossession.
How Does Filing for Bankruptcy Help Stop Repossessions?
Alta Legal can assist you in avoiding repossession by filing your Chapter 13 bankruptcy petition on your behalf in Utah. The powerful automatic stay kicks in as soon as we submit the petition, requiring your creditors to cease all collection efforts.
Unlike a Chapter 7 bankruptcy, which prevents you from keeping any vehicle valued over 2,500 dollars, a Chapter 13 bankruptcy enables individuals to hold that automobile and keep making payments, usually with a reasonable interest rate or none whatsoever. These lower payments will be in effect for the duration of the repayments, which are generally 3-5 years.
How a Utah Lawyer Can Help
Do you want to discuss your financial situation with someone who can assist you? Contact our bankruptcy attorney Taylorsville at Alta Legal. We will gladly speak with you and weigh your best options to avoid repossession.