If you have fallen behind on your automobile payment or if you have had your automobile repossessed, it is not too late to keep it. A Chapter 13 bankruptcy allows you to reorganize the back payments on your vehicle and pay it back usually under more friendly terms than the original note. The Harris Law Firm can help you get started immediately to stop repossession processes. Contact us today—call 501-372-6985, or set an appointment online.
How Chapter 13 Works
A Chapter 13 is designed to restructure and reorganize all of your debts into one affordable monthly payment. The payment is affordable because it is based off the amount of disposable income you have. Disposable income is the income you have left over after subtracting the amount of your total take home income from the amount of your reasonable living expenses. Secured debts like you vehicle are paid back in the plan and unsecured debts that you cannot afford to pay back are discharged out.
Chapter 13 allows you to pay back the note under possibly more friendly terms. First, a Chapter 13 plan can go up to five years. If you owe last than five years on your vehicle, this allows you more time to pay it back which means less of a monthly payment. Second, if you have a high interest rate on the loan, Chapter 13 allows you to repay the loan at a lower, more fair interest rate. Finally, if you have been buying your vehicle for more than 2.5 years, Chapter 13 may allow you to pay back only the current value of the vehicle as a secured debt instead of the amount owed.
Chapter 13 is a fair way to pay back your creditors because creditors all get paid through an organized plan (based on what you can afford) instead of each creditor calling and trying to harass you into paying their debt in full. It is fair to you because you only pay what you can actually afford.
What about getting my car back after it has been repossessed?
If your car has already been repossessed you need to act quickly. When a creditor repossesses your vehicle, if that creditor want to collect a deficiency against you after selling it, they send you a letter stating you have a certain number of days to redeem the vehicle by paying off what is owed on it. If they are not trying to collect a deficiency, they can sell the vehicle without any notice to you. Your vehicle is usually sold at an auction. Once sold, it is too late to get it back.
However, you can avoid all of this by filing for Chapter 13 bankruptcy. Once the bankruptcy case has been filed, your vehicle cannot be sold at auction. The creditor is required by law to immediately return the vehicle back to you. Therefore, the process of getting your vehicle back is very quick and can be usually be done within a day or so.
Stop the Repossession Process
Do you have other questions about how to stop repossession, or how bankruptcy protections can work for you? The Harris Law Firm offers free consultation so you can make an informed decision. We do not charge a fee unless you decided to file. Contact us or call us at 501-372-6985 or set an appointment online.
Let us help you get a fresh new start.
Our Pledge To You
• We will consult with you without charge. There is no fee unless you decide to file.
• We will make the process affordable for you. Our Fees and Costs »
• We will do all the paperwork. No stacks of confusing forms.
• Your case will be handled by an attorney, not a legal assistant.
• We will be with you every step of the way to make sure you get a fresh start.
The Harris Law Firm has over 30 years experience in helping Arkansans file both Chapter 7 and Chapter 13. Give yourself a fresh new start — call us at 501-372-6985 or set an appointment online. We offer free consultations. There is never a fee unless you decide to file.
We represent clients in most of Arkansas including Pulaski County, Jefferson County, Faulkner County, Garland County, Lonoke County, Hot Springs County, Saline County, Little Rock, North Little Rock, Hot Springs, Malvern, Benton, Bryant, Cabot, Conway, Pine Bluff, Searcy, Sherwood, Jacksonville, Russellville and Lonoke. See Arkansas Counties We Practice In for a full list. We are a debt relief agency. We help Arkansans file for bankruptcy relief under the Bankruptcy Code. No information on this website or contact through this website should be interpreted as giving legal advise or creating an attorney-client relationship. Please read our Terms and Conditions page.