Orange County Car Repossession Lawyer
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Stop Car Repossession –Call Marshack Hays Wood
There are few things more stressful than looking for your car and realizing it’s been taken. If you’ve fallen behind on loan payments, you may have experienced this after having your car repossessed. Auto repossession allows your car lender to take your car and sell it to pay off your loan debt, which can leave you without a car and in fear of additional legal trouble, like a deficiency judgment.
Repossession can be a lot more than an inconvenience: it can be a stressful and difficult time for any car owner. At Marshack Hays Wood, we want to help you keep your car–call us at (949) 333-7777 to schedule a free consultation with an Orange County repossession lawyer from our team.
What is Vehicle Repossession?
When someone buys a car, they rarely pay for it outright. Usually, they’ll take out a car loan and make monthly payments on it until the car is paid off. If they fall behind on their car payments, they are “in default” on their loan, and they may be in danger of losing the car through vehicle repossession.
Repossession is the act of seizing a piece of property that was listed as collateral on a loan in order to sell it. Cars and other vehicles are often tied to the loan agreement as collateral, meaning car lenders can seize the vehicle and sell it if they don’t receive their payments.
What Can Lead to Repossession?
There are a few things that can lead to repossession, one of which is defaulting on the loan. In California, someone can have their car repossessed the day that they are in default. Lenders also are not required to provide notice of car repossession and can repossess the car from any publicly accessible area. Car lenders can also repossess someone’s car if they breach any terms of the loan agreement.
Can Bankruptcy Stop Car Repossession?
Yes, filing for bankruptcy can stop the car repossession process. During bankruptcy, lenders are required to cease all collection activities, including automobile repossession, because of an injunction called the “automatic stay.”
The Automatic Stay
If you fall behind on your car loan, you may receive annoying calls and letters from your creditor or a third-party collection agency demanding payment. The automatic stay aims to relieve someone filing for bankruptcy from the pressure of these collection attempts, as well as ensure all creditors are being treated the same throughout the bankruptcy process. The stay can also halt or prevent foreclosures, evictions, utility disconnections, collection calls, wage garnishments, and car repossessions.
Normally, the stay will be in place for the duration of the bankruptcy process, but it’s important to note that this is not a guarantee. For example, creditors can file a motion to lift the stay, while the bankruptcy is still ongoing. Additionally, if you have filed for bankruptcy once in the past year already, the stay may only last 30 days, unless you are granted an extension. A repossession attorney can help you file for an extension and avoid repossession while you work to get your finances in order.
How to Get a Repossessed Car Back
If your car has been repossessed, there are still a few ways to reclaim your vehicle, including filing bankruptcy. A car repossession attorney can help evaluate your situation and find a solution that works best for you and your current circumstances.
Reinstate the Auto Loan
One way to recover your car after having it repossessed is by reinstating your original loan with your car lender. This will require you to pay any outstanding balances, as well as late fees and auto repossession costs, but it will allow you to get your car back and be in good standing with your lender.
Redeem the Vehicle
Another way to get your car back after auto repossession is to pay off the loan entirely and redeem the car. This will also require you to pay off outstanding balances, late fees, and repossession costs, as well as pay off the remainder of the loan. This allows you to have your car back as well as leave the situation without any future loan obligations to that creditor in regards to the car.
File for Bankruptcy
If you have your car repossessed, you may be able to get it back by filing for bankruptcy. Car repossession is usually a sign that someone is struggling to pay more than just their car loan. Luckily, filing for bankruptcy allows you to reorganize your finances and handle all of your debts, all without the stress of things like foreclosure, repossession, and collection attempts.
Most people who file for bankruptcy either file under Chapter 7 or Chapter 13 of the bankruptcy code. Chapter 7 bankruptcy, also known as liquidation bankruptcy, allows you to liquidate your assets to pay off certain debts, while others are dismissed. Chapter 13 bankruptcy allows you to establish a payment plan so you can pay off your debts over a period of a few years and avoid injunctions in the meantime.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy doesn’t require you to make a payment plan, so you may have to continue to make payments on your car in order to keep it. However, there are some other benefits to filing for Chapter 7, in addition to the benefit of the automatic stay.
Avoid a Deficiency Judgment
A deficiency balance is the remaining portion of your debt after the car has been sold and the auction and repossession costs have been covered. If you fail to pay the balance, you may have a deficiency judgment filed against you. Luckily, filing for Chapter 7 bankruptcy can help you avoid legal proceedings and even have the deficiency balance discharged in the bankruptcy process.
Reaffirm Your Car Loan
Chapter 7 also allows you to negotiate with creditors to modify or reaffirm your loan. This way, you can avoid repossession and work to find a debt solution directly with your creditor. Note that not all creditors are required to negotiate with you, but many will.
Chapter 13 Bankruptcy
By filing for Chapter 13 bankruptcy, you will not only be allowed to halt repossession, but you’ll also be able to stay current on your car loan, allowing you to keep your car for as long as you make payments. Before filing, however, you should speak to a skilled Orange County bankruptcy attorney, who can take a look at your current financial situation and help you develop the best plan of action.
Do I Need a Lawyer to Stop Repossession?
Working with a car repossession lawyer gives you your best chance at stopping a car repo, as they can help you navigate the debt resolution process and find a solution that works best for you. Repossession lawyers can also help you defend against a deficiency judgment if your rights were violated at any point in the repossession process.
For example, if you believe your car was wrongfully repossessed or your lender repossessed your vehicle while it was in a private garage, you may want to contact a lawyer. They can help prove that you weren’t behind on your car payments or that the repossession company breached the peace to access the vehicle.
Contact an Orange County Bankruptcy Lawyer with Marshack Hays Wood Today
Car repossessions are stressful, but the legal professionals at Marshack Hays Wood are here for you. Our bankruptcy attorneys can help you prevent repossession and find debt relief options that work for you. Call us at 949-333-7777 or contact us via our website and schedule your free consultation today.
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At Marshack Hays Wood, our attorneys provide the legal support you need to move forward with confidence. Let us help you take the first step toward financial stability.
