For better or worse, cars are the life-blood of America. Unless you live in a major urban city with excellent mass transit, you likely need a car to get around, especially back and forth to a job. But cars can be expensive. According to USA Today, the average new car payment in the U.S. was $503.00 in 2016. Even worse, the average new car loan takes 68 months to pay off. When you add the cost of gas, maintenance, car insurance, and parking, many of us spend as much on our cars as we do on a place to live. But, the car is what keeps us in motion, back and forth to work, school, the grocery store, the doctor and every place else. So what happens when you fall behind on your car payments? Worse, what happens when the lender calls and says that they are repossessing the car? Life can grind to a stop without our cars!
One of the most effective means of preventing repossession of your car is bankruptcy. As I frequently tell my clients, once you file for bankruptcy, your creditors have to back off and, in many cases, that’s exactly what you need. A Chapter 13 bankruptcy stops the treadmill for a minute and allows you to put your finances in order without the threat of having your car ripped out from under you. And while bankruptcy may seem like a drastic response to avoid a repossession, we’ve already said how important the car is in your daily life. If it’s how you get back and forth from work, your car helps you earn that paycheck which keeps the lights on and the water running.
A Chapter 13 bankruptcy will allow you to catch up your late payments over a period of 36 to 60 months. During that time, your creditors will NOT be unable to swoop in and repossess your car in the middle of the night. In some cases, you can reduce the total amount you pay for your car or the interest rate that you pay on your car loan. Depending on the length of your bankruptcy plan, you may be able to repay your entire car loan within your Chapter 13 bankruptcy plan.
So if you are falling behind on your car payments and lie awake at night listening for the tow truck in search of your car, stop the anxiety and call our offices for a free initial consultation to determine whether bankruptcy is the right option for you. The Law Offices of Mark A. Bandy can help you with car repossession in Savannah.
The Law Offices of Mark A. Bandy, P.C.
102 Brandywine Rd.
Savannah, GA 31405