If you've been missing your car payments and think you could be at risk of losing your car, filing for either Chapter 7 or 13 bankruptcy, could be your answer. Here's why:
Let me emphasis this: They have the right to take back your car without going to court or warning you in advance.
And to top it off, if they take back the car, any difference between what you owe on your purchase contract (plus certain expenses) and what your creditor gets for reselling the vehicle is called a “deficiency.”
For example, if you owe $5,000 on your car and your lender sells it for $2,500, the deficiency is $2,500 plus any other fees you owe under the contract.
In Nebraska, your lender can bring legal action against you to sue you for a deficiency judgment to collect whatever you still owe as long as they followed the proper procedures for repossession and sale.
Let me keep it as simple as possible, without getting into all the details. If you're worried about losing your car and it's important for you to keep it, you basically have two options:
First, a Chapter 7 bankruptcy may protect your car from a forced sale. Here's what I mean. If you own your car outright and owe no debts on it, then your car may be fully protected from repossession due to Chapter 7 exemptions.
Now, if you want to keep your car (assuming you still owe money on it), we can contact the lender and sign what is called a "Reaffirmation Agreement." This is a contract between you and the car lender in which you agree to pay the balance on your car note, regardless of the Chapter 7 bankruptcy filing.
Second, Filing for bankruptcy under a Chapter 13 may allow you to keep your car while repaying your car loan at a more affordable rate. If you file for Chapter 13 bankruptcy, I can restructure your payment plan in a way that allows you to make payments over a 3-5 year time period, including any back payments you may owe.
While I could write about all your options, I'm more than happy and committed to discuss your possible repossession for FREE— with no obligation.
Simply, pick up the phone and let's talk. On the initial call, you can have as much of my time and advice as you need at no charge whatsoever.
You can reach me 24/7, not just from 9-5 Monday-Friday. So, whether it's 7pm on a Wednesday night or 11am on a Sunday morning, I'm here to serve you right now 402-659-4254.