A large number of potential clients walk through our office doors with the threat of repossession looming over them. It, more often than not, is the push that gets them in for a consultation. Most times their creditors are threatening to take away a family’s vehicle. The only source of transportation the family has and essentially their livelihood! How can someone pay off their debts if they have no way of getting to their job or earning money? Repossession is a huge concern for our clients. So, what are one’s options when facing a potential repossession?
Well, you can let the creditor repossess. The creditor will then sell the property and put that money towards what is owed to them. You will be given notice of this sale and, afterwards, informed of what if anything is still owed to the creditor. In the end, the property is lost and there is a good chance you will still owe the creditor money when everything is said and done. Definitely not an ideal situation.
A second option is to speak with the creditor directly to negotiate a payment plan. It costs them money to repossess property. It may be in their best interest to work something out with you directly. It may not be. They could very well refuse to work something out with you or they could negotiate a deal that is weighted heavily in their favor. And, down the line, could potentially move forward with repossession if those payments aren’t being made.
A third option is where we come in! Filing for bankruptcy halts repossessions. The creditor cannot attempt to collect the property without the express permission of the bankruptcy court. Additionally, by filing a Chapter 13 bankruptcy any arrears can be accounted for in your plan which can get you caught up and allow you to keep the property.
Conclusion
Facing a repossession, foreclosure, or creditor harassment? Call or visit www.kainscott.com for a consultation with MN’s MOST EXPERIENCED bankruptcy law firm to learn your options today.
