When you’re already in debt, it is essential to maintain your current livelihood to keep from accruing any more debt. New cars are becoming less and less affordable for many Tennessee residents, despite the necessity of owning a working vehicle. When this vehicle is necessary for your work, losing it could mean not getting to a job site or making the commute to your workplace.
Exploring your options
When it comes to repossession, your options are relatively limited. When a lender has a lien on your property, including your vehicle, you have very few options to avoid repossession unless you can provide owed payments on the car. For unsecured debt, like credit cards, medical debt, student loans, utility bills, you may have more options. Here are three potential outcomes when it comes to preventing your car from being repossessed:
- When a credit card company (or some other organization that you owe an unsecured debt to) attempts to collect, their best option is usually to file a lawsuit against you.
- Filing Chapter 13 could halt repossession via automatic stay provisions of the US bankruptcy code.
- The stay provisions are contingent on creating a reorganization plan that includes a payment plan for the debt that could lead to vehicle repossession.
- In some cases, Chapter 13 can help you decrease the interest rate you owe on a vehicle loan.
Finding the best methods of dealing with your debt
There are so many considerations for a bankruptcy filing. Since every bankruptcy case has its unique concerns, it would be best to contact an experienced bankruptcy attorney to explore the options available to you.
