Palmdale Repossession Lawyers
If you are behind on auto loan payments, you may eventually get that dreaded feeling that the lender will send the repo man to take your car. However, this is a common strategy used by banks to preserve their security interest, which is your vehicle. Repossession can significantly disrupt your life when you count on it for transportation, but there are ways to avoid it. Dealing with a lender may be an option, and you might be in a position to consider bankruptcy.
Legal help is critical when repossession of your vehicle is looming, and you will certainly need guidance when pursuing the most suitable option for your situation. At Wadhwani & Shanfeld, our lawyers are skilled at working out ways to avoid the repo man. We have extensive experience helping protect vehicles, so you can trust us to assist with your matter. Please contact us to schedule a consultation with a Palmdale repossession lawyer. Some background is also helpful.
Avoiding Repossession
Some people are surprised that an auto lender can take a vehicle when the owner does not make payments, but recall that these loans are usually secured by that same vehicle. The creditor is simply repossessing the collateral for the loan. However, you can attempt to get back on track by working with the lender on:
- Loan reinstatement, in which you pay past-due amounts and then continue with regular monthly payments;
- Negotiating a modification on the auto loan to lower your payments; and,
- Redemption, which is usually impractical because you will be forced to pay the entire loan just to keep your car.
Bankruptcy Options
There are a number of benefits to filing bankruptcy as a way to avoid repossession and resolve many other debts. Upon filing, the automatic stay kicks in. Creditors, including auto lenders, must cease all collection efforts. You are no longer at risk of repossession. There are two types of bankruptcy to consider:
- Chapter 7 bankruptcy discharge, which eliminates your auto loan and other debts if you qualify; and,
- A Chapter 13 debt reorganization plan that lowers payments, including a “cramdown” that reduces your loan to the value of the vehicle.
Why Legal Help is Critical
Auto lenders are relentless with repossession efforts, but you stop them immediately when filing for bankruptcy. Still, you will need guidance with understanding your options. Wadhwani & Shanfeld is prepared to advise you, so you can make the right choice with Chapter 7 or Chapter 13. Alternatively, our Southern California repossession lawyers will be diligent in negotiations with a lender if it is possible to change the terms of your loan.
Discuss Your Options with a Palmdale Repossession Lawyer
When you rely on your vehicle for personal, professional, and family reasons, you must do all you can to avoid repossession. Wadhwani & Shanfeld is ready to support you in dealing with a lender, and we will assist with the legal process if bankruptcy makes sense. Please contact us to set up a consultation with a Southern California repossession lawyer who will provide details.
