Being faced with losing your car or other important asset because you cannot pay your bills is an understandably troubling situation. While repossession is a common tactic that Florida creditors resort to when faced with nonpayment, you have the power to stop these attempts. By filing for bankruptcy, you can both stop repossessions and set yourself on a path toward debt relief.
For most people, owning a vehicle means having steady, reliable access to transportation for work, school and other important matters. Since public transportation is not always reliable or even available in certain matters, potential repossession of your vehicle can be life-changing. When you file for bankruptcy, an automatic stay goes into effect, which prevents creditors from continuing any type of collection efforts against you. This means repossessions stop, your foreclosure is put on hold and harassing creditors have to stop calling you at all hours of the day and night.
However, the automatic stay is only a temporary measure. If you want to keep your vehicle in the long run, you will also have to sign something called a reaffirmation agreement, then play catch up with your payments. Although you can potentially do this with Chapter 7 bankruptcy, Chapter 13 may provide a better opportunity since repayment plans last between three and five years.
Whether it is a top-of-the-line sports utility vehicle or a used car that you bought five years ago, your vehicle is important to you. If you are faced with a potential repossession, an emergency bankruptcy filing can be one of your best options to keep your car. More information about repossessions, bankruptcy in Florida and debt relief is readily available on our website.