Save Your Car/Truck/Motorcycle from Repossession
A Chapter 7 or Chapter 13 bankruptcy may allow you to stop a vehicle repossession. When you file for bankruptcy, an automatic stay is created that puts a temporary halt to many types of collection activity, including auto repossession.
If you are eligible for a Chapter 7 bankruptcy, you can discharge your unsecured debts, like credit card bills and medical bills. Unfortunately, secured debts (debts secured by collateral) — such as an auto loan — are different. If you file for a Chapter 7 bankruptcy and still owe a debt on your vehicle loan, your debt may be discharged, but the auto dealer can repossess your vehicle.
To stop this from happening, you may reaffirm your auto loan debt through a process called redemption. Fortunately, one of the provisions of Chapter 7 is that you are only required to pay back the present market value of your vehicle. Therefore, if you owe $10,000 on your auto loan, but the present market value of your vehicle is less, you only owe the fair market value of the vehicle. If you are not eligible for Chapter 7 relief, you may also put a stop to an auto repossession through a Chapter 13 bankruptcy.
Contact a Utah Bankruptcy Attorney
If you are at risk of losing your car, your home or any of your other valued property items to a creditor, the law office of Theron D. Morrison can help. Our law firm has helped people throughout Utah fight creditor harassment, home foreclosure, asset seizure, wage garnishments and other aggressive creditor measures.
To schedule a free consultation with a bankruptcy lawyer at our firm, call 801-528-4883 or contact us by e-mail. We have convenient office locations in Ogden, Sandy and Logan, Utah.
