The coronavirus has impacted all of our neighbors in the Tampa Bay Area. Whether the impact has been to your income or the expense of supplies needed to prepare for this emergency it is very likely that you are worried about how to pay all of your bills on time. While it may seem like the world is paused, your car payment will continue to be due every month. If you are falling behind or expect to in the future you should be aware of every tool available, and one of the most powerful tools for saving a car is a bankruptcy.
Stop a COVID19 (Coronavirus) Car Repossession with Chapter 13 Bankruptcy
You can use a Chapter 13 Bankruptcy to save your car even if your lender has a repossession out. As long as you still have your car when you file a Chapter 13, the car will be protected. See 11 U.S. 362. These protections happen automatically once your bankruptcy case is filed. Once you are in the bankruptcy, you can force your auto lender into a five-year repayment plan at a likely lower interest rate than you currently have. The new payment plan in the bankruptcy is based on the federal bankruptcy code Title 11 which means that the auto lender doesn’t have to give their permission. Chapter 13 Bankruptcy may be the solution to your high car payments being paid in this trying time.
Car Repossession because of COVID 19 (Coronavirus)
If your car was already repossessed or if you can simply no longer afford your car payment a Chapter 7 Bankruptcy can ensure the loan doesn’t haunt you in the future. When a car is repossessed or even voluntarily surrendered your lender will auction the vehicle. If they are not paid in full for your loan you will be sent a bill for the remaining amount. Chapter 7 bankruptcy can remove your liability for the debt so you can have a fresh start. Without a bankruptcy you can be sued for the balance owed which can lead to bank and wage garnishments for 20 years.For more information contact a bankruptcy attorney in Tampa to schedule a consultation.
Tampa Bankruptcy Law Firm
At Florida Law Advisers, we understand filing for bankruptcy can be a very confusing and intimidating process. That is why we work so hard to make the process as easy as possible for our clients. We will help ensure your rights are protected and receive the most benefits bankruptcy can offer. To schedule a free consultation with a tampa bankruptcy attorney call us today at 800 990 7763.