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Dealing With Car Loans and Repossession Problems

We don’t usually find that car loans are the most serious financial problems that push people toward bankruptcy, but the need to make a large payment every month can certainly contribute to your current financial pressures.

At WANTLAND LAW, PLLC, our attorneys help people find sensible solutions to car loan problems that can interfere with your ability to meet your other monthly obligations. For a free consultation about your options, contact us in Shepherdsville and discuss your situation with an experienced lawyer.

Call 502-957-0000 for Advice About Auto or Truck Loan Problems

Unless you paid the full price of your car when you bought it, there’s usually a secured creditor holding a collateral interest in your vehicle with a right of repossession if your payments go into default. While a bankruptcy case will generally relieve the risk of immediate repossession, you’ll still need to deal with the fact that your lender has a right to the vehicle that secures its claim. You may also be under an obligation to maintain insurance.

Our first step is to help you figure out whether your car is worth keeping. It’s probably not worth as much as you owe on it. One option is to turn it over to the lender, because the additional amount you owe after surrender is dischargeable in bankruptcy.

Another option is what’s known as bankruptcy redemption. You can own your car free and clear of your lender’s claims by paying the actual value of the vehicle after you’ve filed for bankruptcy. If you owe $10,000 on a car or truck worth $6,000, a payment of $6,000 will take care of the obligation — the remainder will be discharged.

But where are you going to get the money? We know how to find lenders that specialize in car redemption loans in bankruptcy. Many of the people we work with are able to refinance their vehicles while they’re in Chapter 7 or Chapter 13. Because you’ll only need to borrow an amount up to the actual value of the car, your monthly payments will almost certainly be a lot less than they are now. We can advise you about all the details.

To learn more about your ability to resolve a car loan problem through surrender or redemption, contact WANTLAND LAW, PLLC in Shepherdsville for a free consultation.

We are a debt relief agency. We help people file for relief under the U.S. Bankruptcy Code.