Stop Repossession of car
As soon as the vehicle has been repossessed, the creditor might think of keeping it as a repayment of your debt or he/she may sell it through a private or public sale. In some of the states, the creditor has the power to let the borrower know what his plans are in the car. For instance, if the car is sold in a public auction, the law of the state might mandate the creditor to let the borrower know when and where the sale will be, so then he can also participate in the bidding.
That may be due to loss of job, divorce, death of a love one and others. But good thing there are lawyers to be of help. Some people hire a bankruptcy lawyer to help them deal with car repossession, but this is not the best solution to stop repossession of car. The Chapter 7 bankruptcy will not solve your problem, it can help in delaying the repossession of your car.
If the vehicle that was repossessed will be sold privately, the borrower still has the right to know the date of the sale and where it will take place. There are some states that protects the consumer and they have repossession laws about reinstating the loan. This means that you can get back your car if you pay the amount you have not paid for on the loan along with the fees of the repossession. This can help you stop repossession from taking place in the first place.
Stop repossession in Utah
Some people hire a bankruptcy lawyer to help them deal with car repossession, thinking that Chapter 7 can help them with their needs. But, this is not the best solution to stop repossession of the car. The Chapter 7 bankruptcy will not solve your problem, it can help in delaying the repossession of your car. This is because the primary rule of bankruptcy is that all of the secured debts can be paid or the secured creditor may ask for the lien on property, which is the ownership of the property. It is as simple as when you acquire a car loan, you just place the car up as a collateral for the loan.
If you will not pay for the car payments on time, then the lender can ask for the repossession of vehicles. Bankruptcy will not change the entire process, bankruptcy will confirm it. You pay the car, you keep it. That is the rule of the law if you do not pay, you will lose your car. Your lawyer will inform you that it is not worth it to file for bankruptcy, particularly the Chapter 7 if you only have the car debt to deal with. The cost of filing, the cons and the negative credit report you will get will just become more than the benefits you will get when you keep your car and pay for the monthly amortization.
Car repossession laws
It pays to know the car repossession laws in your state, because that will help you find out how to stop vehicle repossessions under certain conditions.
- According to the law, the repossessions of the vehicle in Utah may occur as soon as you have signed a contract while you are still using the vehicle as a collateral for the loan. If you fail to honor the terms of the agreement, the vehicle in your possession may be repossessed by the creditor right away.
- The majority of the lender needs will ask for an acknowledgement in bold, like the car loan which will lead to auto repossessions under the Utah state laws. The primary repossessions in the state of Utah are cars and trucks. In Utah, any type of vehicle that may be encumbered with a loan can be subject to repossession. RVs, motorbikes, boats and airplanes are not exempted in this law.
- According to the law in Utah about vehicle repossession, the companies have the rights to recover the vehicle provided, they must adhere to some rules that limit how and where they can also repossess the property.
- The agents cannot get into your property without your permission get the property. The agents cannot use any violent act in any way to get the property by force. There are agents who are very much eager to fulfil their job, but the law clearly says that they must not get the car by force and that is subject to the rule of the law of the state.
- The repossessions cannot just occur when a repossession agent has fooled you by bringing the vehicle into a shop and then get it after you have left it for repair or for a service. But if you bring the car on your own without the repossession agent saying something to convince you, you have the right to take the car even if it is up for repossession.
Can bankruptcy stop repossession of a vehicle?
Filing for bankruptcy cannot stop the repossession of the vehicle process from taking place. It is just a better alternative to delay the process and be able to negotiate for the payment arrangement. If you have just failed a few months ago to pay for the mortgage loan, you still have a good credit history with the creditor and you can still do something about this matter. You must find a good lawyer to be able to negotiate with the creditor about a possible loan modification. This is so if you want to recomputed for the debt of the car and then keep it again. When you have decided to recomputed, reaffirm or whatever you want to call it, you need to sign for a new contract with the creditor of the car. More often than not, the same terms of the old contract will be included in the contract.
Of course, you would want to stop car repossession or even prevent it from happening to you, but how to stop repossession of the car will depend on the lawyer you will get in this case. We are still the best in Utah when it comes to bankruptcy issues and car repossession cases. All you need to do is to call us and we will be there for you to be of help. Can bankruptcy stop repossession of a vehicle? We will let you know as soon as you hire us and give us the chance to help you with your concerns. Look nowhere, because we will be with you along the way if you select us.
My name is Craig R. Chlarson. Whether you are seeking to eliminate your debt, typically through a chapter 7 filing, or whether you are seeking to reorganize your debt, typically through a chapter 13 filing, or even if you have basic bankruptcy questions, call me today. I can help you.
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