Repossessions happen when you can’t afford to pay for an asset, usually a vehicle, that you purchased with a secured loan.
Many items purchased with a secured loan, such as a car or truck, even furniture or other rent-to-own items were bought as necessities. For many Coloradans, these items are considered among their most valuable possessions.
That’s why repossession can be extra scary for people who have fallen behind on secure loan payments. Losing a car can mean missing work, school, or doctor’s appointments; vehicles allow us to take care of all the things our busy lives require us to do. If you’re already financially struggling, the possibility of losing your most valuable assets can make the situation even more daunting.
The good news is, you may be eligible to file for bankruptcy, which can halt the repossession process while you get your finances back on track. Keep reading this webpage to learn more about halting repossession through bankruptcy and other ways you may avoid having your assets repossessed. Once you’ve finished digesting the information we’ve provided here, please contact our Colorado bankruptcy attorneys to discuss the circumstances surrounding your case. Our firm offers a free case consultation for every prospective client in order to offer you specific advice based on your case’s unique circumstances.
Aggressive debt collectors can be quick to repossess assets such as cars, tools, or furniture if you are behind on your payments. The loss of vital items that you need for work or life can have a devastating impact on your circumstances. If your property has been repossessed or is facing repossession, bankruptcy may provide a solution.
Debt relief seekers in Colorado commonly file for either Chapter 7 or Chapter 13 bankruptcy. Regardless of which you chose, as soon as you file for bankruptcy in Colorado an automatic stay goes into effect. The automatic stay halts all creditors or collection agencies from trying to collect money or assets from you during the duration of your bankruptcy case.
Chapter 7 bankruptcy, also known as simple bankruptcy or liquidation bankruptcy, is a discharge in which the debtor’s debts are completely discharged via the liquidation of the debtor’s assets. All profits from the sale of the liquidated items are then used to pay off the petitioner’s debt. Any leftover debt not covered by the liquidation is then discharged.
If reading that Chapter 7 bankruptcy involves liquidating assets sent a chill down your spine, try not to freak out. If you’re looking to keep certain assets, such as your primary vehicle or tools you require to do your job, Colorado offers extremely generous asset exemptions for people seeking to file bankruptcy. That means that you may be able to keep your car from being repossessed when filing Chapter 7. Of course, there are exceptions to this, and if you’re concerned about whether or not your assets would be exempt, please don’t hesitate to contact an experienced CO Chapter 7 bankruptcy attorney. Our team of legal professionals would be happy to help you figure out what falls under Colorado’s bankruptcy exemptions.
The chapter 13 bankruptcy plan, also known as a wage-earners bankruptcy, provides for payment or partial payment of secured and unsecured debts via a payment plan spread out over the course of 3 to 5 years. By filing your Chapter 13 case, your secured loan creditor will be forced to receive their payments through the Chapter 13 plan. This means that your “payment’ will then be up to date.
If your car or other asset has already been repossessed, filing for Chapter 13 may be the only option for getting your possession back. If you file Chapter 13 within approximately two weeks of the repossession, you may be able to have your asset returned to you. As you can see, it’s important to act fast if you desire to file Chapter 13: you have a very small window in which the asset can be returned to you. Chapter 13 bankruptcy must also be filed before the asset is re-sold by the creditor.
It’s important to note that while filing bankruptcy under either chapter will protect you from collection on the deficiency balance, neither Chapter 7 nor Chapter 13 bankruptcy will allow you to keep the asset without some provision for payment. That means that if you are unprepared or unwilling to pay the remaining balance owed on the possession, you will need to consider relinquishing that asset during the bankruptcy process.
Bankruptcy isn’t the right option for everyone. A few other options that may be available to you if you’re hesitant or unwilling to file include-
Regardless of where you are in terms of repossession, if you can’t make all of your loan payments, you shouldn’t make a decision on how to proceed without the help of an experienced bankruptcy attorney.
If you’re struggling to pay a secured loan, you don’t have to wait around for your lender to repossess your asset. You can take action today! Contact our firm today to speak to one of our experienced Colorado bankruptcy attorneys. With decades of combined experience with the federal bankruptcy code, our team of legal professionals has helped countless Coloradans use the benefits offered by bankruptcy laws to avoid repossession, and we can help you do the same.
We service clients all over Colorado, including the following counties and cities:
When you hire one of our Colorado bankruptcy attorneys, we can help you understand your options for preventing the repossession of your vehicle, the foreclosure of your home, or other issues related to the debts you owe. We will advise you on the steps you can take to file for bankruptcy, receive relief from your debts, and maintain ownership of your property. If you’re looking for an experienced debt relief attorney to help you stop repossession in Colorado, contact our firm today for a no-cost case consultation.
