You need your car for work, to get to school, to go to the grocery store and even to drive your children around. Having a vehicle is critical to your career and your independence, so if you start receiving threats of repossession, your right to drive in Tennessee is at risk. Falling behind on payments is something that many people face, and by taking the appropriate steps, you can make it stop.
When you finance a vehicle, the creditor or leasing company has the right to take your vehicle in the event that you fall behind on payments. You may feel powerless to do anything, especially if you do not have the extra money to catch up on the debt, but bankruptcy may be an appropriate step for you. Filing for bankruptcy will halt the repossession process.
What you can do to fight back against repossession
Technically, the creditor or leasing company can move to initiate the repossession process the moment you default on your loan. However, you may find that you can do a few things to stall this process. From negotiating payments to seeking a different payment date, there are options available. However, many of these efforts are simply bandages over a major wound—they cannot heal the real problem, which is significant debt and insufficient income.
Bankruptcy could be the most important way you may fight back against the threat of repossession. By filing for either Chapter 7 or Chapter 13 bankruptcy, the following things will happen:
- The automatic stay will go into effect, halting all repossession actions currently pending against you.
- It will allow you the opportunity to pay off debt over time or discharge the debt at the end of the bankruptcy process.
- Bankruptcy shields you from further contact and harassment from creditors, including those pertaining to a defaulted car loan or lease.
As a consumer, you have rights. This includes the right to seek bankruptcy protection and explore all of your options regarding an appropriate way to deal with unmanageable debt.
Driving toward a stronger financial future
Dealing with insurmountable debt can be overwhelming and tiresome, especially when creditors are constantly hounding you and threatening you with the repossession of your personal vehicle. Bankruptcy can not only make this stop, it can allow you a way to keep your car while pursuing a stronger financial future, free from the debt that is currently running your life.