In the meantime, to ensure that the vehicle is safe from the repo company, you can lock the car in a garage or park it away from your usual haunts. He or she can contact the car loan lender right after filing your case and head off any plans for repossession. If you are behind in your car payments at the time you file bankruptcy, inform your attorney. As a result, creditors will at times order a repossession because they have not received notice of the bankruptcy. Although many national companies use the court's electronic database to research the status of accounts before taking any collection action, smaller creditors often fail to take that extra step. This lag time can create issues for you and your creditors. But it usually takes the court about a week to mail out an actual notice to your creditors. the creditor was aware of the bankruptcy but was ignorant of the restrictions imposed by the automatic stay.Īs soon as you file your bankruptcy petition, the information is available in a searchable electronic database.the creditor was not aware of the bankruptcy filing, or.(The automatic stay prohibits creditors from continuing with collection actions once you file for bankruptcy.) If the creditor knew you were in bankruptcy and repossessed the vehicle anyway, the bankruptcy court could sanction the creditor.Ĭar creditors repossess cars in bankruptcy for two reasons: Unless your car creditor had permission from the bankruptcy court, the repossession is in violation of the automatic stay. (Learn more about how car repossession works.) Why Would a Creditor Repo My Car After I File Bankruptcy? Fortunately, most creditors will release the car right away after you notify them of your bankruptcy filing. With a frantic call to the local police department you learn that your creditor has repossessed your car. We want to discuss your debt settlement options with you so that we can help give you a brighter future.Suppose you file bankruptcy and several days later discover your car, van, SUV, motorcycle, or truck is missing. If you have old repossession charges, or any other forms of unsecured debt, and are looking for a trusted debt settlement company for help, contact us today. Get Experienced Help with Debt Relief Today
It is one of the fastest ways to help you get your life back on track. In order to leave the past behind you and move forward, consider debt settlement. Old repossession charges can have a lasting impact on your life. If they agree to do so, make sure to get it in writing with a signature so that they cannot go back on their word. If your lender agrees to the settlement, they may also agree to take the repossession charges off of your record once the settlement has been paid off. By lowering the amount owed, it will be easier for you to make the payments and will be paid off in just a couple short years. The reason that many lenders are willing to negotiate is because they would rather get some of the money that is owed, rather than nothing at all. Debt settlement companies will negotiate with your lender to help lower the amount of money that you owe on the repossession. Luckily, there is an option that can not only help lower the amount of money still owed on the repossession, but it also can get the repossession charges taken off of your record.ĭebt settlement can help clear your record from old repossession charges. Having something this big on your credit report will make it extremely difficult for you to get loans in the future. Even though the effects of the repossession charges will lessen over time, it will still have an effect on your credit throughout the 7 years. That is a long time for something to stay on your record. Repossession charges stay on your record for 7 years. How Long Does a Repo Stay on Your Credit? Banks, more often than not, will sue for the remaining balance of their car loans once the car is repossessed. When Happens When a Car Gets Repossessed?ĭepending on the lender, you may be sued for that remaining balance. If they are able to do so, then you will still owe the remaining balance that the lender was not able to retrieve. In most cases, the lender will try to resell the vehicle to make back as much money as possible. Once a vehicle is repossessed, the remaining balance on the vehicle is still owed. If My Car is Repossessed, Do I Still Owe the Balance? If you haven’t been making your payments, unfortunately, your vehicle was most likely repossessed. Many people would think that their vehicle was stolen. You can be grocery shopping just like any other day, and walk out to the parking lot to find that your vehicle is gone. If you purchase a vehicle and get an auto loan, the inability to make payments toward paying off the loan will most likely result in a repossession.
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