Oklahoma Bankruptcy HelpCan Oklahoma Bankruptcy Stop Repossession of a Vehicle
Don’t Let Anyone Repossess Your Car!
For most people, cars have become a virtual necessity in the modern world. The lackluster mass transit systems major cities offer do little to mitigate the need for most people. Riders often consider public transit to be unsafe or unsanitary. Most people opt for a car instead.
As with most major purchases, people usually gain access to cars through loan companies. There can be a downside though. Credit agreements give lenders the right to repossess your vehicle without notice if you default on the agreement. Bankruptcy seems to afford debtors a way to avoid repossession but at best bankruptcy stalls repossession. You’ll either need to pay the loan, give up the vehicle or persuade the lender to restructure payments.
Filing for bankruptcy simply to stall vehicle repossession might afford no advantage in the long run. But if your vehicle is in peril, bankruptcy might allow you to discharge other debts so you have enough money to make scheduled vehicle payments.
There are other advantages, too. If you are considering bankruptcy, you should know that all loan agencies must temporarily leave debtors alone during a bankruptcy. Simply getting creditors off your back and off your telephone can allow you time to re-invent your financial life. While bankruptcy is merely a temporary solution to nagging bill collectors, consulting with a Tulsa Bankruptcy Lawyer could help you come up with a long-term financial strategy.
Bankruptcy Made Simple
Filing for bankruptcy can be a complex process, especially for someone who has never had their finances examined by a court. They are seemingly endless forms you need to fill out before the process can begin. Information needed in a petition for bankruptcy consists of four things:
- A list of all the creditors you borrowed from;
- An accurate account of the debtor’s income;
- A list of the debtor’s monthly expenses;
- And, a list of properties the debtor owns.
Married people must also account for their significant other as well; meaning your spouse’s monthly income and expenses needs accounting for as well. Even if your spouse does not plan to file for bankruptcy with you, they still must follow these procedures. If not, the court clerk could render your bankruptcy petition invalid. For help gathering the resources needed to calculate your finances, consider hiring a bankruptcy attorney.
After recording each of the requirements for a bankruptcy petition, you must submit the documented list to the United States Federal Government. Once submitted, the government along with some creditors will evaluate your financial position. Depending on the court’s ruling, they can acknowledge or deny your bankruptcy. If acknowledged, you will finally get the chance to stop your vehicle repossession.
How Does Bankruptcy Stop Repossession of Vehicle?
Once you file for bankruptcy, a person can list certain pieces of property as exempt from liquidation. Exempt items may include cars, motorcycles, recreational vehicles, and homes. By listing your vehicle as exempt, loan companies can no longer repossess your property for the time being. Once your bankruptcy is over, unless you’ve reached an agreement with the loan company or pay off any past-due amounts, creditors may repossess your vehicle.
While this may seem like one crisis evaded, there are still a few matters that need settling. Creditors reserve the right to seize secured property after a bankruptcy. Repossession of collateral in a secured debt after bankruptcy is 100% legal. Usually, the only way to keep property gained from a secured debt in your bankruptcy is to reaffirm the secured debt.
A reaffirmation is an agreement between a creditor and a debtor. The creditor promises to not repossess the property as long as the debtor continues to pay off the debt.
So is it possible to avoid car repossession during bankruptcy? Yes, but the secured debt may face repossession if not paid before or after the bankruptcy.
Initial Strategy Session With A Bankruptcy Attorney
Whether you like it or not, personal vehicles are a modern necessity for most people. Without transportation, people often can not attend school, work, or any other social events. Don’t let someone take away your independence. Keep your vehicle and call Financial Freedom Bankruptcy Lawyers of Tulsa to find out whether filing for bankruptcy in Oklahoma will let you reset your financial life. Call us at (918) 786-9600. You can also set up a low-cost initial consult using the contact form button on this page.
