Richard Banks & Associates | Tennessee Bankruptcy Law

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Richard Banks & Associates | Tennessee Bankruptcy Law
423-219-3299
Courteous, Confidential And Confident Debt Relief Guidance

Cleveland Repossession Lawyer Protecting Your Vehicle

Facing ‌car repossession can be a terrifying experience. The law firm of Richard Banks & Associates, P.C., has been fighting repossession and providing bankruptcy services to people throughout Tennessee and North Georgia since 1974. We can take fast action to help you stop repossession and keep your vehicle.

How Bankruptcy Can Immediately Stop Repossession

The moment a bankruptcy case is filed, a powerful federal court order called the automatic stay goes into effect. This instantly halts all collection activities, including repossession attempts, paycheck deductions and lawsuits. This provides you with the critical time needed to figure out a long-term solution. In fact, if your vehicle was recently repossessed, the automatic stay may allow us to get it back for you.

Using Chapter 13 To Save Your Car

For many people, Chapter 13 bankruptcy is the most effective way to save a vehicle from repossession. This option allows you to:

  • Cure arrears: Catch up on any past due car payments over a short period as part of a structured repayment plan.
  • Lower your interest rate: The court can often reduce the interest rate on your car loan, making your monthly payments more affordable.
  • Reduce the principal (cramdown): If you’ve had your vehicle for at least 910 days (about 2.5 years) and you owe more than it’s worth, a “cramdown” can reduce the principal balance of your loan to the vehicle’s current market value.

A successful Chapter 13 plan can help you keep your car and regain control of your finances.

Using Chapter 7 To Address Your Car Loan

Chapter 7 bankruptcy also provides an immediate stop to repossession through the automatic stay. However, unlike Chapter 13, it does not offer a path to catch up on missed payments. You have two main options with a car loan in Chapter 7:

  • Reaffirmation: You can agree to continue making the car payments and keep the vehicle under the original loan terms.
  • Surrender: You can give the car back to the lender, and any remaining debt (the deficiency) can be discharged in your bankruptcy.

For many, Chapter 7’s primary benefit is eliminating overwhelming unsecured debts, such as credit card and medical bills, which frees up money to keep current on car payments.

Answers To Your Frequently Asked Questions

We have compiled some of the most common questions clients ask us regarding bankruptcy and repossession.

Does bankruptcy stop repossession?

Yes, filing for any type of bankruptcy triggers the automatic stay, which legally requires creditors to stop all collection activities, including repossession.

What is an automatic stay?

An automatic stay is a court order that goes into effect immediately after a bankruptcy is filed. It acts as an injunction, stopping creditors from trying to collect a debt. This means they cannot repossess your vehicle, call you or sue you.

Protect Your Vehicle – Free Consultation Today

Don’t wait until it’s too late. The sooner you act, the more options you have to protect your vehicle. Call our office at us 423-219-3299 or fill out our online form for a free, confidential consultation.

 

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.