How To Get Help With Car Payments

Many debtors are asking their attorneys, “Can Chapter 7 help with late car payments in Mississippi?” If you own a car, you know that it is a necessity, not a luxury. Your car can be used to drive you to work, take your children to school, or buy groceries. 

A vehicle is an important tool in everyone’s life when public transportation does not suit you due to a busy schedule. If you took out a large loan when you got your vehicle, financial difficulties might cause you to have late car payments. When this happens, consulting with an experienced bankruptcy attorney is a must. 

If you are someone who is facing financial difficulties, The Rollins Law Firm can offer effective solutions. Our strong commitment is to guide you from beginning to end. We will make certain that you do not get lost and that you obtain the best possible result in order to gain control of your financial situation. 

With over 10 years of experience, our law firm can guarantee high-quality legal services. If you are wondering if Chapter 7 bankruptcy can help you with your car payment, schedule a free consultation with us now.

An Overview of Chapter 7 Bankruptcy

Unlike Chapter 13 bankruptcy, where you can have a repayment plan of 3-5 years, Chapter 7 is far different. Chapter 7 bankruptcy is commonly known as liquidation bankruptcy. It is a perfect type of bankruptcy in that it cancels most of your debts, regardless of type, while enabling you to protect or exempt property you own. 

If you have too much, the United States bankruptcy trustee will sell or liquidate it and use the proceeds to pay your creditors. Even if the bankruptcy code is under federal law, your state laws will determine the amount and type of property you can legally exempt. Some states may be more generous than others, which is why exemptions can widely vary.

What Will Happen If You Cannot Pay Your Car Loan?

Those who apply for a car loan are almost always concerned about making late car payments. You are not alone in this struggle. You don’t have to worry about having your car repossessed if you recently missed a car payment or two. 

Normally, failing to make payments has a negative impact on your credit score and may result in car repossession. Many lenders have financial hardship programs that you may use to seek help. Instead of ignoring the situation, you have to ask your lender. 

Check What Help Your Lender Can Offer

Check to see what programs your credit union, bank, or other car loan lender has for you. Be familiar with the Mississippi Repossession Laws as well, with the assistance of an experienced bankruptcy attorney, to determine what you can and cannot do. Most, if not all, automakers no longer promote or advertise their car payment relief programs. 

If you are currently facing late payment because of any other valid reason, such as job loss, you should contact your lender. You have to explain your circumstances so that they may be able to offer assistance such as partial payment, lease extension, or payment deferral.

Many debt collectors and lenders offer programs that are easy to apply for. You simply fill out a form, provide some information, send it to them, and wait for it to be approved. Be realistic and honest about how long it will take you to get back on your feet.

Past Due Car Payments

Most creditors will not try to repossess your car until it is not more than 60 days past due. However, it is worth keeping in mind that there is no specific rule in the United States or Mississippi that says a car loan must be a specific number of days late before it can lawfully be repossessed. Lenders will decide whether they will repossess the vehicle or not. 

Filing for bankruptcy opens up a number of options for you to pursue, depending on your desires. If you want to keep your car, you can file for a bankruptcy case. If you no longer want to save your car and all the debts related to it, bankruptcy can help. If your car has been repossessed and you want it back, bankruptcy can help you.

When you file a bankruptcy petition, you and your property are immediately put under the protection of the bankruptcy court. This is referred to as the automatic stay. It is a restraining order of the court that prevents lenders from repossessing your vehicle even if you missed your payments. 

The Automatic Stay

Most of the time, people filing for bankruptcy have already faced weeks, months, or even years of harassment by creditors demanding payment and threatening collection and lawsuit actions. Chapter 7 bankruptcy helps you put an end to all of this. 

Filing a bankruptcy petition establishes a federal order known as an Order for Relief, known as the automatic stay. It requires your creditors to stop all collection activities, meaning creditors cannot garnish wages and go after properties or repossess your car. 

Can Chapter 7 Bankruptcy Help?

By filing for Chapter 7 bankruptcy, you can stop all the collection activities and repossession efforts of your debt collectors in an instant. A Chapter 7 bankruptcy petition handles matters a little differently than a Chapter 13 case. Typically, you need to be current on your car loan before filing. 

There are certain instances where a Chapter 7 petition is better than a Chapter 13 bankruptcy case because of other concerns and debts you are experiencing. The help it gives in other aspects would allow you to catch up on your monthly payments for your vehicle. 

Call Our Mississippi Bankruptcy Attorney Now!

Filing for Chapter 7 bankruptcy may be your answer on how to get help with car payments. Bankruptcy filing needs greater adherence to the bankruptcy code to avoid unintentional violations. If you are new to this, contacting an experienced bankruptcy attorney should be your first step.

If you need assistance with financial difficulties, remember that The Rollins Law Firm is here to assist you. Filing for bankruptcy should not be difficult if you have experienced attorneys on your side. Aside from bankruptcy, we can also help you with personal injury, social security, and workers comp concerns. Our legal team believes that every client is entitled to a new beginning. Book a free consultation with us now!

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