Times have been hard for many people over the last year and a half, and when all of the bills cannot be paid, one of the most common loans that fall delinquent is the auto loan. Even a single missed payment on a car loan can result in repossession, but with the help of an experienced Georgia bankruptcy attorney, a vehicle owner can halt the repossession process. At the Cornwell Law Firm, our knowledgeable bankruptcy attorneys have helped many clients around the Duluth area avoid repossession of their vehicles. To learn more, call or contact our office today to schedule a consultation.
Problems Caused by Car Repossession
With auto loan delinquency at an all-time high and debtor protections at an all-time low, it is easier than ever for a lender to repossess a person’s vehicle. Having a car repossessed can be problematic for a number of reasons. First, having a car repossessed can make it difficult or impossible to get to work, school, run errands, care for loved ones, and engage in many other activities. Without the ability to get to work, it can become impossible to make up the payments on the loan and get a vehicle back. Second, having a car repossessed can have a massive impact on a person’s credit score. This in turn can make it more difficult to secure future auto loans or receive favorable terms for any future line of credit.
How a Bankruptcy Attorney Can Help
A highly qualified Georgia bankruptcy attorney can stop the repossession of a car by helping their client file for bankruptcy. When a person files for bankruptcy, an automatic stay is placed on all lender repossession efforts, including auto repossession. It becomes illegal for a lender to continue the repossession process once the automatic stay is in place from a bankruptcy filing. An automatic stay also prohibits other types of creditor actions, including wage garnishment, foreclosure, and other types of repossession efforts.
Sometimes, an automatic stay is not enough to keep lenders from trying to use loopholes to continue the repossession of a vehicle. A bankruptcy attorney can ensure that the motor vehicle exemption applies to the repossessed vehicle or apply the wildcard exemption to a car to prevent its repossession during the bankruptcy process. These exemptions also prohibit the bankruptcy trustee from seizing a vehicle during bankruptcy proceedings to pay off creditors in a Chapter 7 or Chapter 13 case. If you would like to learn more about how a bankruptcy attorney can stop a car repossession, talk to our office today.
Call or Contact Our Office Now
Vehicle repossession can be a stressful and emotional experience, but this is not a process that you need to go through alone or accept without reviewing your legal options. At Cornwell Law Firm, our knowledgeable Georgia bankruptcy attorneys are here to help stop the repossession of your car and walk you through the process of filing for bankruptcy. Call the office or contact us today to schedule an evaluation of your case.