Falling behind on car payments can happen to anyone, and it can be difficult to get caught up in time to stop a repossession. Once you fall behind, your finance company may begin car repossession proceedings, and they have the legal right to do so after just one missed loan payment. If you fall behind, they may decide you are not a good credit risk and take aggressive collection action against you. They have no obligation to warn you of such a decision, and a repo man may appear at your home with a tow truck at any time. If you are concerned that this is in your future, call a lawyer to help you avoid such repossessions.
Repossession Explained
Repossessions in Longview, TX, are a legal process whereby a creditor can collect property owned by the debtor when payments have become delinquent. If the creditor liquidates the collateral to satisfy their lien, anything remaining is known as a deficiency balance. You are still obligated to pay the deficiency balance even after you lose your car, making the process at once frustrating and still financially difficult. If you find yourself in such a position, contact us to learn about your options and get the help you deserve. A dedicated and compassionate lawyer will help you keep your car and avoid the heartache of repossessions.
Filing for Bankruptcy
Filing for bankruptcy is one way to avoid such an issue, as you will still own the car until it is sold at auction. When you file for Chapter 7 or Chapter 13 bankruptcy, an automatic stay is placed on all forms of debt collection, including the payments on your car. Therefore, creditors cannot repossess your assets, such as your car, a boat, or a trailer. Filing for bankruptcy will immediately give you the chance you need to catch up with everything and take a steady breath.
