Is your creditor threatening repossession because you are behind on your car loan? Are you delayed with your mortgage payment and concerned about foreclosure? If you are experiencing financial problems which put your property in danger, you may be able to find relief through bankruptcy.
Once you file Chapter 7 or Chapter 13 bankruptcy, the court will issue an automatic stay which will stop your creditors from making any attempt to collect their debt, including attempting foreclosure of a home or repossession of a car. However, it is extremely important to know that if you are falling behind on your payments, filing Chapter 7 bankruptcy will delay but not permanently stop a repossession or foreclosure. The automatic stay will expire approximately 60 days after your Chapter 7 bankruptcy case is filed. Only a Chapter 13 bankruptcy allows you to cure delinquent payments and keep your property through your payment plan.
Chapter 13 Bankruptcy is also known as the reorganization which is used by consumer debtors and may be used to stop home foreclosures, car repossessions, IRS garnishments and levies. Chapter 13 bankruptcy can eliminate a second mortgage if the value of your home is less than the value of the first mortgage. In certain situations, you can lower the balance of your car loan to the vehicle’s fair market value and extend the length of the loan, making the payments more affordable. With Chapter 13 bankruptcy, you can immediately begin a repayment plan which is often lower than your current auto payment by reducing the car to fair market value.
At Lozano Law Offices, we take pride in helping clients. Call us at (510) 538-7188 or contact us online.The earlier you act to protect your property, the better position you are in to avoid repossession and foreclosure. Speak to us and learn what you can do to fight repossession and foreclosure and retain what you have worked so hard.