When you can’t afford to make your car payment and get months behind, it’s a tough situation. The car financing company may threaten to repossess your car or send a collection agency after you. You might wonder if you’ll wake up one day and find your car missing from the driveway. Don’t panic. You have the option of filing for bankruptcy, stopping debt collection calls and protecting your car. Get the help of a bankruptcy attorney as soon as possible.
How Do I Save My Car if I’m Behind on Car Payments?
Chapter 13 bankruptcy, also known as a reorganization bankruptcy, organizes your debts and reduces your payments down to a manageable level. You and your bankruptcy attorney can use Chapter 13 bankruptcy to sort through all of your debts and find ways to protect your assets. This means you may be able to prevent your car from repossession and stop the finance company from pestering you in the meantime. It gives you a chance to catch up on your car payments and get your finances in order.
How Do I Stop the Debt Collectors From Calling Me?
Here’s some great news about Chapter 13 bankruptcy: It makes creditors leave you alone. When you file, you gain the protection of an automatic stay, which tells your creditors to halt calls, letters, and other communications intended to collect money from you. The car financing company will have to stop contacting you during your bankruptcy window and give you time to complete the repayment plan successfully. It’s a breath of fresh air for anyone who has been struggling to make car payments.
What is the Fair Debt Collection Practices Act?
The Fair Debt Collection Practices Act (FDCPA) is the federal law that protects people from certain practices by creditors and collection agents. The FDCPA is always in effect, but it is especially relevant during your bankruptcy case or after its discharge. It means debt collectors can’t contact you after you have retained a bankruptcy lawyer or do any of the following: harass you, use profane language, make threats, contact your family members, make misrepresentations, claim to be an attorney or law enforcement officer or make false promises about resolving your debt. If a debt collector is engaging in these practices, discuss it with your bankruptcy attorney immediately and be sure to document it thoroughly. If you sue one of these companies and win the case, you may receive statutory damages up to $1,000 plus attorney fees.
Will the Chapter 13 Bankruptcy Payments Be Affordable?
Chapter 13 bankruptcy is intended to be an affordable process that allows you to get caught up on your debt and still have enough money to cover your basic expenses. It will take into consideration your specific needs and finances. If you’re worried about being able to pay pack all of your debts, talk to a bankruptcy attorney about your options. In Chapter 13, you do not pay all of your creditors back. In most cases, the bankruptcy process will help you reduce the interest rate you pay on your car, stretch out your payments, reduce your monthly payment amount and manage your finances more easily overall. It’s a fresh start that will help you get back on track.
Sawin & Shea LLC – Indianapolis Bankruptcy Attorneys
Filing for bankruptcy is not the end. It’s the beginning of a new financial life for you. The Indiana bankruptcy attorneys at Sawin & Shea LLC can help you get rid of the overwhelming debt and advise you on life after bankruptcy. We are here for you during this life-changing process. Please do not hesitate to call us today at 317-759-1483 or send an email for a free consultation. We are ready to help.