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These days, financing isn’t just limited to cars or homes. Now, Arapahoe County residents have the option of taking out a loan for other items like motorcycles or motor homes, furniture, or a new washing machine and dryer.
Chances are if you’ve financed a big-ticket item, you thought long and hard about making this purchase. You budgeted, you shopped around for the best deal, and maybe you even made a pro-con list. At the time you finally financed that item, you were probably so excited that you weren’t thinking about the possibility of there coming a time when you could no longer afford to make payments on that new purchase.
But life happens. Divorce, a medical emergency, a sudden job loss. Most people don’t plan for catastrophes. No matter the cause, a sudden influx of debt can cause you to miss payments on your financed property, leading to the threat of repossession.
Make no mistake, the vast majority of people who fall behind on bills are hard-working people that have every intention of paying back their lenders. If you are behind on bills and mounting interest is making it impossible to get ahead, it may be time to consider bankruptcy.
If you have received notices about pending repossession, you need help now. Bankruptcy may be the debt relief help you’re looking for. Our helpful Aurora bankruptcy attorneys have designed this webpage to give you insight into how bankruptcy can help halt repossessions in the Arapahoe County area. For more information, please contact our team of experienced Aurora debt relief lawyers. The answers you seek are just a phone call or email away.
If you are struggling financially, there is a good chance you are falling behind on some of your financed loan payments. Sometimes, when you’re in debt, a hard choice must be made. If you have to weigh paying a necessary utility bill like your electricity payment over a luxury bill like your car payment, the winner will almost always be keeping the lights on.
The unfortunate truth is, creditors do not care about your difficult circumstances–valuable property gets repossessed every day in Aurora. If you are behind on your car payments and other bills, filing bankruptcy may help you avoid repossession.
Aurora residents seeking debt relief most commonly file for either Chapter 7 or Chapter 13 bankruptcy. Whether you file for Chapter 7 or Chapter 13 bankruptcy, as soon as you submit your bankruptcy petition 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. This includes any creditor attempts to repossess your assets.
Chapter 7 bankruptcy, also known as simple bankruptcy or liquidation bankruptcy, is a form of bankruptcy 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.
Please don’t let the words “liquidated assets” scare you off from filing for Chapter 7 bankruptcy. 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 petitioners of Chapter 7 bankruptcy. That means that you may be able to keep certain possessions like your car or furniture from being repossessed when filing Chapter 7.
Chapter 13 bankruptcy is the other bankruptcy option for Aurora residents seeking debt relief. As we will explain in the next section of this website, Chapter 13 bankruptcy is generally one of the “easiest” ways to get your car back if it’s been repossessed.
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 past-due car payments will get lumped into your payment plan, allowing you to get caught up.
If you’ve stumbled upon this website because your car has been repossessed and you need help, try not to panic. You have options. Possibly one of the most important things you should know is that you need to act quickly– you only have about 20 days to decide whether you’re going to try and get your car back because in Colorado a car finance company must only keep a car for 20 days after repossession.
The way we see it, there are four actions you can take when your car has been repossessed in Aurora.
Rarely, if your car has been repossessed, the lender will demand that you pay the entire loan off before allowing you to take possession of your vehicle. What will most likely happen is that the lender will let you pay the arrears plus any repo charges incurred to get the car back. If you have not had multiple repossessions, you can usually just call the lender, arrange to pay the arrears and get your car back.
If you have the funds available, you can opt to pay the entire loan off, get the car’s title, and never have to worry about missing any payments on that car again. Obviously, if you’re already deep in debt, this is the least feasible option. Our Aurora bankruptcy attorneys understand that not everyone has the luxury of having this much money on hand, especially on short notice. Chances are, if you’re here reading this, you’re in debt beyond just missing some car payments, so this option probably isn’t viable for you. But it’s worth including in this list, however unfeasible it may be.
Chapter 13 bankruptcy is the only way to force a lender to give back a repossessed car immediately without paying them any money. If the amount the lender demands to give back your car is too high, filing Chapter 13 bankruptcy in Aurora forces them to give the car back and take payments over time.
Additionally, if you qualify, there is another benefit to filing Chapter 13 bankruptcy if your car has been repossessed– the cramdown. This involves paying off the car at a reduced or “crammed down” amount based on the value of the car through bankruptcy court. Be aware that this “cramdown” right only applies to cars purchased more than 900 days before filing for bankruptcy, and your Aurora debt relief attorney can help you figure out if this is a valid course of action for you.
Finally, sometimes it makes more sense to just let the car go. Especially if you think it’s probable that you’ll miss more car payments in the future. It’s worth noting that if you decide to take this option, you will often still be liable for a deficiency. If you have trouble paying a deficiency, you may be able to defeat it if the repossession process was faulty in some way or by discharging it (and other debts) in a Chapter 7 bankruptcy.
Extensive debt and repossession often go hand in hand. If you’re struggling with debt and want to stop the repossession process before it gets started, it’s essential that you retain the services of an experienced Aurora bankruptcy attorney. For a free consultation about your bankruptcy options and how to stop repossession, contact our firm today.
Bankruptcy is a viable option for anyone experiencing uncontrolled debt who craves a fresh financial start. You don’t have to live in debt anymore. In fact, most people that file for bankruptcy are surprised how quickly their credit score improves. Contact us today and let one of our legal professionals help you take the next step.