Michigan Voluntary Car Repossession
Lawyers Representing Clients in Ann Arbor, Warren, Dearborn, Southfield, Flint and throughout Michigan
When you face serious financial difficulties, staying current on your vehicle loan payments may not be possible. In these circumstances, one of your options is to turn the vehicle over to the lender. As experienced bankruptcy lawyers, we can advise you as to whether you should pursue this option, and if so, we will help you manage any resulting debt so you can begin to repair your credit.
At Acclaim Legal Services, PLLC, we focus entirely on bankruptcy. Since 2003, we have handled many voluntary vehicle repossessions, and we have prevented many involuntary repossessions. If you are looking for solutions to your debt problems, our Ann Arbor voluntary car repossession attorneys are ready to help.
To schedule a free consultation where we will analyze your specific situation and evaluate your options, please call us at 866-438-5217 or contact us online. For your convenience, we have offices in Southfield, Flint, Dearborn, Warren and Ann Arbor.
How Does a Voluntary Repossession Work?
Essentially, if you are unable to make your car payments, you can give the vehicle to your lender. The lender will sell the car at an auction. Typically, the auction price is lower than the amount owed on the loan and then you are liable to pay the difference plus associated costs. For example, if you owe $15,000 and the car sells for $9,000, the lender will likely sue you for the remaining $8,000 plus any cost incurred through the auction process. This is called a "loan deficiency." So, what can be done about this deficiency?
722 Redemption: As experienced bankruptcy lawyers, we may be able to help you avoid the repossession process altogether. In certain circumstances, we can get a court order requiring your lender to accept a lump sum payment of less than the amount owed on the debt, and you get to keep your car. Therefore, if you owe $15,000 and the car's market value is $10,000, you would only have to pay $10,000.
Bankruptcy As a Solution
Once repossession has taken place and the car is sold at auction, bankruptcy is a tool you can use to deal with a deficiency judgment and any other debts.
- Chapter 7 : Filing for Chapter 7 bankruptcy will eliminate the deficiency, as well as any other unsecured debt, such as medical bills, credit card debt and personal loans. You will get a fresh start and be able to move on from this difficult period.
- Chapter 13 : For those who anticipate being able to pay a portion of their debts, a Chapter 13 reorganization is a good option. In this process, we develop a payment plan for all of your debt, one that is manageable, court protected and helps rebuild credit. You make payments for three to five years, and then whatever remains unpaid is legally eliminated.
Contact Us for a Free Initial Consultation
We understand the stress that comes from dealing with tough financial situations. We are ready to advise you and develop strategies to protect your financial future. Schedule a free consultation with our experienced attorneys by calling 866-438-5217 or contact us online.