Repossession is a scary prospect, especially in a city like Birmingham. It’s hard to imagine what life here would be like without an automobile. Every year, however, thousands of people lose their cars and other property to repossession. If you are in danger of becoming a victim of repossession, there are steps you can take to protect yourself and your assets. You do not have to suffer the restrictions of living without a means of private transportation.
Birmingham bankruptcy lawyer Paula Greenway has the experience and qualifications to help you catch up on your missed payments and save your property. By filing for bankruptcy, you have federal protection from the threat of repossession. Contact Greenway Bankruptcy Law, LLC today at (205) 324-4000 to schedule a free initial consultation.
How Filing for Chapter 7 or Chapter 13 Bankruptcy Can Help
By filing for either Chapter 7 or Chapter 13 bankruptcy, you can halt creditor harassment and take the time necessary to regain control of your financial situation. All processes of foreclosure, repossession, and garnishments are also stopped.
A Chapter 7 filing will give you a total of thirty days to catch up on your missed car payments. It will also put a hold on the repossession process while you repay the owed money.
A Chapter 13 filing will give you up to five years to catch up on your missed payments. Depending on your situation, your interest rate may also be reduced.
For Chapter 13 filers with automobiles that are over two and a half years (910 days) old, the only required payment is interest on the present value of the car. In these cases, the interest would be reduced to the prime rate, along with a 2% risk factor. This means that the interest rate can go from as much as 21% to as little as 7.5%. The full amount owed does not have to be repaid.
If you are in danger of having your assets repossessed, then filing for bankruptcy can provide the protection and breathing room you need. Contact Birmingham bankruptcy lawyer Paula Greenway today at (205) 324-4000 to schedule a free initial consultation and explore your options.