The Truth About Car Repossessions And Bankruptcy

Are you avoiding the repo man? Are you still receiving harassing phone calls even after you turn the car back in? We can help!

 If you have fallen behind on your car or truck payments, filing bankruptcy can help! One of bankruptcy’s most powerful tools is the fact it can start to work right away. Its “automatic stay” can stop the repo man immediately. Once a bankruptcy has been filed, it is very difficult for the finance company to repossess your car or truck. WE CAN SLOW DOWN THE PROCESS OR EVEN STOP IT ENTIRELY. Bankruptcy may even help you get your car back after it has been recently repossessed, but you must act fast.

In some cases, a good bankruptcy attorney can spread your past due auto payments over 36 or 60 months without further penalties or interest in a Chapter 13 bankruptcy reorganization plan. In other cases, we may be able to reduce the TOTAL amount you owe on the vehicle. THAT MEANS THAT instead of paying THE $15,000.00 you owe on the car, you only have to pay the $9,000.00 that it is currently worth and we can work at putting you into a comfortable payment plan. The sooner you see us, the more options you may have. Before your car gets repossessed is when you have most power over the banks, and we can help you the most.

On the other hand, sometimes it’s not worth keeping a car. MAYBE you can’t afford the payments or the car is just not worth what you owe. In many bankruptcy cases, we simply include the money you owe on your car in with your other debts and wipe it out in the bankruptcy. No more stress for you and no dealing WITH the repo guy!

Some people think that once their car or truck has been repossessed, they no longer owe any money. The bank got the car back and the debt should be gone. WRONG! That is not how it works. Once your car has been repossessed, it will be sold at auction. If it sells for less than what you owe (which it nearly always does) the bank will come after you for the difference. They can start the harassing calls again, file a lawsuit and even garnish your wages. You might be able to avoid all this from happening.

If your car has been repossessed or is in danger of being repossessed call us NOW for a free no obligation consultation at 305-663-3281. The sooner you do, the sooner we can discuss your options, the sooner we could find a solution for your problems and the sooner you will feel relief.

Rebuilding Your Credit

Rebuilding your credit after bankruptcy can be both a financial and emotional experience. You will feel a great deal of relief once you get your bankruptcy discharge—it’s the fresh start you deserve!

Once your bankruptcy has been discharged; rebuilding your credit begins immediately. After the bankruptcy, be sure and pay any continuing obligations, such as a car payment or rent on time. Being on time on each of your commitments is the surest way to raise your credit score as quickly as possible. 

Within three months of your case being completed you should apply for a new credit card. Either approach your bank or apply on www.creditcards.com for a low limit MasterCard or Visa. Expect to pay a hefty annual fee, but it is worth it. You will immediately raise your credit score if you make your payments on time and pay in full. Be smart, use the cards for purchases you need, not just want and make sure to set the money aside in advance to be able to pay the bill. Remember, the card is not just a “credit card” it is a credit TOOL.

After a few months with the low balance card, you will be solicited for other credit cards with higher limits and lower annual fees. You should accept one of these cards, but please be smart. Don’t use the cards for items you can’t afford. Remember, this is a tool to rebuild your credit. You should have the money available to for each purchase you make. Don’t let the credit card company charge you interest, pay each bill in full and always on time.

After a few months with the second credit card, your score should be climbing to the mid-600’s. This is when you can consider using newly strengthened credit to purchase bigger ticket items, such as a car. Speak with a lender before you go to the dealership. Know how much credit you have and how much of a down payment will be necessary. Remember, this too is a tool to rebuild your credit.

This simple plan is a 18-month post bankruptcy credit repair program. I have had thousands of clients succeed using these steps. A 700 credit score is between 1 ½ to 2 years away for most of my bankruptcy clients. Get started by eliminating your debt and eliminating your stress. Bankruptcy is the ultimate financial stress reliever.

To learn more how to rebuild your credit post bankruptcy, or to learn how filing bankruptcy can let you improve your credit score quickly, call (305) 663-3281 now.