Options for Handling Car Loans to Avoid Vehicle Repossession

For most people, having a vehicle is a necessity, not a luxury.

At Acclaim Legal Services, we understand how critical it is for people who come to our offices to stop repossession of a vehicle, or to prevent repossession in the first place. There are strategies we can use to help you keep your car or truck. Contact the attorneys at Acclaim Legal Services to learn more and to get prompt legal help with preventing repossession or getting your vehicle back after a repossession, as long as it has not been sold at auction.

How Bankruptcy Can Help You Save Your Car

"Can I Keep My Car in Bankruptcy?" Our bankruptcy lawyers often hear this question. Both Chapter 7 and Chapter 13 bankruptcy law have provisions that can help save your car. If your car was repossessed just before you filed for bankruptcy, we may be able to help you get it back.

• If you qualify for Chapter 13 debt reorganization, we can stop a repossession before it happens or get your vehicle back as long as it has not been sold at auction. We can lower your payments, if need be, to help you get back on track. If you have owned your vehicle for more than 2-1/2 years, your car loan can be reorganized to reduce interest payments, discharge a portion of your debt, and help you catch up on missed payments.
• If you qualify for Chapter 7 bankruptcy, you can renegotiate the terms of your loan while reaffirming your loan with the bank or you can refinance your car loan at it's current market value versus what you owe on it through a 722 redemption allowed by federal bankruptcy law.

Reaffirmation: If you reaffirm your loan, you are entering into an agreement with your bank to continue to pay for the vehicle. Often we can negotiate a better rate than your current contract.

722 Redemption: If you redeem your car with a 722 redemption, you are entering into an agreement with the bank or finance company to pay the amount owed or the current fair market value of the vehicle. Since cars depreciate quickly, it's likely that redeeming your car for the current market rate will save you thousands of dollars on your existing car loan.

Can You Redeem Your Vehicle?

At Acclaim Legal Services, our attorneys will review your financial affairs and advise you on whether Chapter 7 or Chapter 13 bankruptcy is an option for you. Contact Acclaim Legal Services today. Your initial consultation is free. Call 866-438-5217.