If you are struggling to meet your financial obligations and are afraid that your car may be repossessed, a Chapter 7 or 13 bankruptcy filing can help you keep your car while getting a fresh financial start. Should you find yourself in this situation, you want an experienced lawyer to help you through the process, one who has successfully represented others in similar circumstances.

At the law office of James C. Reed, P.A., in Rehoboth Beach, I bring over 20 years of bankruptcy experience to clients throughout lower Delaware. I understand the stress and anxiety that come with bankruptcy and will work closely with you to make certain all your questions are promptly answered and that you always understand your options. My sole focus is on helping you resolve your issues and move forward. I offer a free initial evaluation to all clients. Contact me by e-mail or call my firm at 302-227-2477 to set up an appointment.

Using Bankruptcy to Stop Car Repossession

When you file for protection in bankruptcy, you are immediately protected by the automatic stay provided by the bankruptcy laws, which prohibits your creditors from calling, writing or taking any other legal action to recover the debt, other than through the bankruptcy court. Under Chapter 7, the automatic stay would stop the repossession, but you would have to promptly bring your payments current. Under Chapter 13, you are allowed to reorganize your debts, entering into new arrangements to repay your debts over a 3 to 5 year period. If car repossession efforts are already underway, the bankruptcy filing will terminate them. Your car loan would be paid off during you Chapter 13 Plan.

I will handle matters related to your bankruptcy petition including, preparing and filing all the documents required to complete the process, acting as your advocate, and providing representation at all hearings or meetings with creditors, the bankruptcy trustee or the court. In addition, for a Chapter 13, I will put together a plan of reorganization and will review any proposed repayment plans from creditors, to make certain the proposed payments are affordable. Normally, the plan will provide for payment of lower interest than your existing debt. If you enter into a new agreement and make all payments in a timely manner, your car will be completely paid for, at the end of the payment period of your Chapter 13 plan.