We all depend on our cars to get from Point A to Point B. For people who have fallen behind on their car payments, auto repossession becomes a major concern. Being left without a vehicle can make it extremely difficult to get to your job and fulfill many personal obligations. Fortunately, there are solutions. Filing for bankruptcy can stop car repossession activities and make it possible for you to get caught up on your payments.
At the Salt Lake City law office of Justin M. Myers, Attorney-at-Law, LLC, we have helped countless clients to get the debt relief they need and keep their vehicles through filing for Chapter 13 bankruptcy. Our founding attorney, Justin M. Myers, has been involved in bankruptcy law his entire career. He will take the time to help you understand your options and work with you to find the right solution for your needs.
It is easy to get into debt. But it can very difficult to get out. The first step is to seek representation from an experienced Salt Lake City car repossession attorney that can properly inform and protect the rights of clients. Most people do not properly understand their legal rights when it comes to car repossession. Many people mistakenly believe that if their car is repossessed, their obligation for the debt goes with it. In fact, repossessed cars are sold at auction to the highest bidder. If the winning bid does not cover the balance owed, you will be held responsible for any remaining balance as well as collection costs, including towing, storage and other expenses.
By filing for Chapter 13 bankruptcy in Salt Lake City, you are automatically granted an automatic stay against all collection activity, including repossession actions. In Chapter 13, you can consolidate your past due car payments along with your other debts and pay them back over a three to five year period. Going forward, you would simply make your regular car payments as normal.
Along with a bankruptcy petition and supporting documentation, people filing for Chapter 13 bankruptcy will also need to include a preliminary repayment plan which is usually developed during credit counseling. After the creditors meeting you will attend a meeting to confirm your repayment plan. Once your repayment plan has been successfully completed, you will receive a discharge of your debts.
A The means test measures your disposable income against that of other Utah citizens and ensures that your application for bankruptcy is not an abuse of the system.
After the creditors meeting has been completed, the trustee will identify your exempt property and your nonexempt property. Your nonexempt property may be sold at auction and the funds used to repay your creditors. If your trustee decides that none of your property can be sold, you would lose nothing.
After the funds, if any, have been distributed to your creditors, you will receive a discharge and will no longer have any personal responsibility for those debts.
Next to buying a house, cars are the second biggest investment most people will make. However, tough economic times can happen to anyone. The loss of a job, a divorce or huge medical bills can place anyone in a difficult financial position. If you are in danger of losing your car to repossession, it is vital to seek legal representation from an experienced and knowledgeable Salt Lake City repossession attorney with a track record of protecting the rights of clients and looking out for their best interest. Contact our office today to discuss your car repossession questions with a lawyer. We are available during regular business hours and by appointment evenings and weekends. You can reach us by phone at (801) 505-9679 or via e-mail.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.