How ZAP Can Help You
Save Your Car During Bankruptcy
It appears, for the long foreseeable future, that the automobile will be a required fixture for the American household. A car is an absolute necessity for the typical modern family. It provides the mobility required for our jobs, recreation and shopping needs. The use of the automobile provides order and ease in our daily lives. When a vehicle is unavailable for use, it is a devastating loss to our continuing relationships with others.
Financial stability relies on a dependable automobile and its availability for use. A car can be put in jeopardy because of the inability to maintain current payments. When this happens, people panic. The delinquency of an automobile account can result in threatening calls, legal action and repossession.
Once a car has been repossessed, it can be sold by the finance company; however, there is usually a balance that remains due to the finance company which can be collected from the former owner. If you take the appropriate steps, these consequences can be avoided, and the car can be saved.
Through the use of the Bankruptcy Code, a payment plan can be proposed which, in many cases, can lower the interest rates on car loans as well as decrease the amount of money that is paid to the car finance company.
Circumstances also exist when someone can maintain payments; however, the vehicle itself is failing. When someone is under a contract for the purchase of a vehicle, there is no way out. You end up paying for a vehicle you can no longer drive, unless you trade it in.
Unfortunately, in most cases, trading in a vehicle with an outstanding loan just results in more money being owed on the new vehicle and higher payments. In these situations, it may be best to use tools that are available under the law to surrender the vehicle to the finance company and just purchase a new one without the burden of dealing with any balance due on the old one.
The use of Chapter 7 and Chapter 13 bankruptcy provisions allows people many different options when dealing with automobiles. There are provisions, for instance, that allow people to return cars without any balance due and have the opportunity for a fresh start.
There is also the option to consolidate the car and other bills into a single payment with lower interest rates and payments on the car and without any interest on unsecured debt. Each remedy is designed to fit specific needs.
The law firm of Zalutsky & Pinski is able to deal with these and any other issues relating to cars, trailers, boats, or other means of transportation. In many cases, we will also resolve the problems with other debts by reducing them to one, single, affordable payment.
Once we file a case, all collection actions are immediately stopped and reasonable payments begin, thus resulting in an affordable solution for the entire family.
New federal case law may allow you the immediate return of your car on recently repossessed vehicles by filing a Chapter 13 bankruptcy.
New federal case law may allow you the immediate return of your car on recently repossessed vehicles by filing a Chapter 13 bankruptcy. Get immediate return of a recently repossessed vehicle by filing a Chapter 13 bankruptcy. Click here to learn more.
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