In the May 2019 issue of The Credit Union Journal, an article titled ""Are Credit Unions Ignoring Their Roots By Avoiding Subprime Auto Loans?"" was published. It turns out that auto loan default rates have risen to previously unheard-of levels. Lenders face this issue across the country, not only in Ventura County or Los Angeles County.
There are legal defences you might use to thwart the repossession of your vehicle. Many people are unaware that you can temporarily stop your lender from repossessing your car under both Chapter 7 and Chapter 13 bankruptcy law. This is so that the lender cannot repossess your car because the court orders a """"Automatic Stay"""" during bankruptcy proceedings. However, this temporary stay might be all you need to get the lender's attention and get them to work with you and your lawyer on a modified repayment plan. If the lender asks the court to remove the ""automatic stay,"" and the court grants the request, the lender may still take possession of the vehicle.
Contacting your vehicle lender is the best course of action in this circumstance, and it's best to do so through a bankruptcy attorney because it has more legal weight. Additionally, it prevents the lender from harassing you. Your lawyer can help you renegotiate the terms and set up a new payment plan, enabling you to keep your car even if you declare bankruptcy.
If you will, think about the fact that lenders only want to be paid in accordance with the original contract; they are not in the business of reclaiming vehicles; rather, they are in the lending business. They will assess their options and decide what is best for them if they discover that isn't going to happen. A repossessed used car with poor resell market value due to wear and tear and depreciation may be preferable to the lender than a reduced interest rate, reduced balance, or renegotiated conditions. Let's face it, lenders do not want to suffer financial losses beyond what is absolutely necessary.
Another crucial thing to keep in mind is that the ""automatic bankruptcy stay"" is only temporary. If you haven't been paying your bills on time, the lender will likely demand the automobile back after your case is over or they will reclaim it. Remember that the stay is only effective during the bankruptcy processes, which for Chapter 7 continue for around three months.
How Can Car Repossession Be Avoided During Bankruptcy Court Proceedings?
Pay the bills.
repay a late payment
Create a repayment strategy and petition the court to approve it.
Keep in touch with the lender via your lawyer.
Ask for assistance, perhaps by making a few payments with interest only.
Refinance the Auto Loan
Obtain permission from the court to return the car for its fair market value (Redeeming Your Car under Chapter 7 Bankruptcy Law).
enquire about 'cramdown' tactics in Chapter 13 bankruptcy with your bankruptcy lawyer.
What Should You Do If Your Car Is Repossessed Before Filing for Bankruptcy?
To ensure that the lender receives the overdue payments, ask your bankruptcy attorney to assist you in creating a repayment plan. Do not wait if this has occurred to you and your vehicle has already been repossessed. Contact a bankruptcy lawyer right away! The best piece of advise would likely be that.
Putting it all together!
You must be aware of your rights and comprehend the purposes behind your lender's actions. You need a trustworthy bankruptcy attorney on your side, one who has experience working with the local lenders in Ventura and LA County. a knowledgeable, long-standing attorney with legal experience. With the correct plan in place, you can keep your automobile, avoid embarrassment, and maintain access to transportation. After all, you need an automobile because we reside in California.""" - https://www.affordablecebu.com/
