Debt relief options when falling behind on car payments
Florida motorists who have fallen behind on their car payments might consider filing for bankruptcy. This could be an alternative to having the car repossessed or surrendering it voluntarily because both of these outcomes might still leave them in debt. If the car has already been repossessed or surrendered, the consumer might be liable for the amount lost by the seller in an auction.
In most cases, if there is a car loan deficiency, that debt can be discharged in bankruptcy. If the person is facing a lawsuit, this will be dismissed as well. However, it is necessary to file a special motion to remove a judgment that has already gone through.
Filing for bankruptcy prior to the car’s surrender or possession could result in the consumer being able to keep the vehicle. There might be a few options such as reaffirming the car loan or paying the value of the car in a lump sum to the lender. It might also be possible to negotiate with the lender and pay a smaller amount. Another option is surrendering the vehicle during the bankruptcy process and owing no money on it. After the bankruptcy, an individual may begin rebuilding their credit and seek a new car loan.
An individual might also want to look into the possibility of a Chapter 13 bankruptcy. A Chapter 13 bankruptcy may allow the individual to arrange a payment plan and keep property such as a vehicle and a home. Filing for either Chapter 7 or Chapter 13 bankruptcy puts an immediate end to creditor harassment. a lawyer can describe the eligibility requirements while discussing other forms of debt relief debt relief that might be available.