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From the rugged landscape of the San Juan Mountains in Ouray County to the snow-capped Rocky Mountains of Estes Park in Larimer county, Denver offers some of the country’s most popular and scenic road trips
Of course, for residents of Denver, having a vehicle isn’t just for day trips across the state. Most people rely heavily on their vehicles. It is their transportation to work, how they get their children to school, and their security blanket knowing they have the freedom to get where they need to go when they need to be there.
For people who have financed a vehicle, those loan payments are the second largest expense for most households, just behind mortgages or rent. Not making the loan payments for your car may lead to the repossession of your vehicle.
The possibility of losing your car to repossession and having to file for bankruptcy can be daunting. You may find yourself fraught with many questions. For help with the filing process, and to get tailored legal assistance in dealing with your car repossession concerns, consider contacting our Denver County area bankruptcy attorneys.
Vehicle loans are generally considered secured debt. This means that should you default on your payments, the creditor has the legal right to repossess the property.
In most cases, you can miss one loan payment before being subject to vehicle repossession. Under Colorado law, you must be in default on your loan agreement for at least 10 days before your lender can send you a default notice. After your lender sends a notice of default, you have an additional 20 days to bring your loan current before your lender can repossess your car.
The first formal step in the repossession process is the Notice of the Right to Cure. This Notice informs you that you are behind on payments and tells you the specific amount that you need to pay to get caught up, and the due date for that payment. You have 20 days to catch up on payments.
Under Colorado law, borrowers are only entitled to one right to cure notice every 12 months. That means that if you’ve already received one Right to Cure Notice in the past 12 months (and have already cured that default) if you default on any more payments in the next year, your lender no longer has to send you another notice, and can immediately repossess your vehicle.
Additionally, what counts as a default depends on your contract terms. It’s important to note that defaulting on your loan doesn’t always mean that you’re behind on payments. For example, certain contracts may stipulate that if your insurance lapses, you have defaulted on the terms of your loan and your car may be repossessed, even though you are current on your monthly car payments.
Many people believe that by filing a bankruptcy they will automatically lose their car, but that is a myth. If you can’t come up with the amount of money needed to cure the default and the lender isn’t willing to work with you, filing for bankruptcy may allow you to keep your car.
The two most commonly filed personal bankruptcy chapters in Denver are Chapter 7 and Chapter 13. Once you have filed for bankruptcy with the help of your CO bankruptcy attorney, something called an automatic stay is immediately put into effect. This is an operation of law that will prevent your lender from continuing any effort to repossess your vehicle while the stay is in effect, which usually lasts the duration of your bankruptcy case.
When you file for chapter 7 bankruptcy in Denver County or the surrounding area, all of your dischargeable debts will be wiped out. This includes not just credit card and medical bills, but also the debt you owe on your car.
However, Chapter 7 bankruptcy does not cover all money owed on a vehicle, just past due payments you may have missed. If you still owe money for future car payments you will be responsible for covering those if you wish to keep possession of your vehicle. If that isn’t feasible for your financial situation, you may be able to surrender your car or come up with new loan terms with your creditor. An experienced Denver repossession attorney can help you figure out what option is best for your circumstances.
Filing for Chapter 13 bankruptcy in Colorado may be a better option for residents who wish to keep their vehicle after the bankruptcy process. Chapter 13 bankruptcy, also known as a wage-earners bankruptcy, allows the petitioner to consolidate all debt (including owed payments on a financed vehicle) and make payments on that debt over a fixed period of time. In other words, if you can make both your regular car loan payments and your repayment plan payments, you will be able to keep your vehicle.
For more information on repossession and bankruptcy, read Debt.org’s Car Repossession article, or contact one of our experienced Denver County bankruptcy attorneys for a free case consultation.
One of the most negative stigmas attached to filing for bankruptcy in Denver County and the surrounding area is that you will automatically lose your car or home if you choose to file. That is not the case.
The federal bankruptcy code allows each petitioner asset exemptions during the bankruptcy process. An exemption is a law that protects your property in bankruptcy. Exempt property can’t be sold for the benefit of your unsecured creditors. Basically, bankruptcy exemptions level the playing field so that getting a fresh start doesn’t require you to start from scratch. Some examples of Denver state bankruptcy exemptions include:
Don’t let bankruptcy misconceptions keep you from exploring a debt relief avenue that may set you on a path to financial freedom.
Metropolitan areas like Denver County or El Paso county may have several excellent public transportation options, but if you don’t have your own car you can’t get to work, take your kids to school, or get to a doctor’s appointment, your ability to function in the city may be entirely compromised.
If your car is your lifeline, you may be worried that you won’t be able to carry on without it. When your debt begins to snowball and you risk losing your transportation it is time to reach out to an experienced Denver bankruptcy attorney.
One of the reasons clients seek out our experienced legal professionals is to speak with a lawyer who can offer sound advice. Whether you’re looking to keep your car through bankruptcy or want to try and find another debt relief solution, we can help you figure out the best option for your unique circumstances.
The road to filing bankruptcy is generally a difficult time, and our Denver attorneys understand this. We help you to review alternatives and plot the best course of action. Our team does this nonjudgmentally, without stigma as to why you need our services. Contact our office for a free case consultation so we can help you figure out the right path toward financial freedom.