Like many other Florida residents, you could be experiencing financial difficulties that make it nearly impossible to pay your bills each month. You are more than likely enduring harassment by your creditors for payment. If a creditor is threatening to repossess an asset such as your car or motorcycle, it might be time to file for bankruptcy.
The automatic stay put into place upon filing a Chapter 13 or Chapter 7 bankruptcy petition stops all collection activities of your creditors, including repossession. However, it only does so temporarily. If you want to keep the asset, you will need to become current on your payments and enter into a reaffirmation agreement with the creditor.
In some cases, your attorney might be able to renegotiate your loan. More than likely, you owe more on your vehicle than it is worth. Renegotiating the loan amount for the current value of the asset would save you money each month and allow you to keep your vehicle. There is no guarantee that this will happen, but it is a possibility. Most reaffirmation agreements are an agreement between the lender and the borrower to continue under the same loan terms.
If you want to reaffirm a debt and you made your payments through an automatic withdrawal from your account, you should be sure they are still being taken out. In any case, it is recommended that you make your payments by check or money order for a minimum of six months after the bankruptcy is completed. Sending them by certified mail, with return receipt requested, provides you with proof that the payments arrived.
You might think that harassment by your creditors is just the cost of being unable to pay your bills, but it does not have to be. Repossessions and foreclosures do not necessarily have to happen either. Filing for bankruptcy provides you with certain protections and the time to address your financial issues. Considering that your financial future is at stake, it would be beneficial to be represented by a Florida bankruptcy attorney who understands the process, which can be complex and frustrating otherwise.