Repossession Attorneys in Colorado Springs, Colorado
When you’re overwhelmed with debts and unable to make car loan payments, the creditor or dealership might go to any length to recover the unpaid loan, including repossessing your car. Thankfully, you may be able to stop the car repossession and eventually achieve financial relief by filing for bankruptcy. If you want to know the risks of having your car repossessed and understand your options to stop it, you need to speak with a seasoned Colorado bankruptcy attorney for reliable advocacy.
At Kinnaird Law Firm, our lawyers have the diligence and experience to advise and represent clients in their car repossession and bankruptcy cases. We can evaluate your unique situation, explore your possible legal options to stop the repossession, and determine whether bankruptcy is right for you. In addition, we will guide you through the bankruptcy process and help you achieve the most favorable outcome.
Kinnaird Law Firm proudly serves clients across Colorado Springs, Colorado, and surrounding communities throughout El Paso County and Douglas County.
What Is Repossession?
Repossession involves the legal steps taken by a creditor, financial institution, or lender to seize a debtor's property as a result of nonpayment or default on a loan. For instance, your car loan provider or leasing company may take the required legal steps to repossess your motor vehicle for missing a car loan payment in order to offset the car loan.
Repossessions & Chapter 7
Chapter 7 bankruptcy, also referred to as liquidation bankruptcy, is designed to help consumers who are overwhelmed with debts wipe out most of their general unsecured debts and give them a clean financial slate. In Chapter 7, the bankruptcy trustee will collect, evaluate, and sell your non-exempt assets, and then use the net proceeds to settle your debts and repay some or all of your creditors.
Can Chapter 7 Stop Car Repossession?
Upon filing for Chapter 7, an automatic stay order will go into effect. This is a court injunction that prevents creditors and debt collectors from collecting any debts, taking legal action, or repossessing your assets. For this reason, you can stop a potential car repossession by filing for Chapter 7 bankruptcy. Thus, the car lender may only repossess your vehicle after seeking permission from the court or filing a motion to lift the automatic stay order.
Can You Get Your Car Back?
If the car lender has repossessed your vehicle prior to your bankruptcy petition, you're still within your rights to purchase or "redeem" the car back in a Chapter 7 case for the vehicle's fair market value. You will need to file a motion with the Colorado courts and make a lump-sum payment of the car's current value.
Repossessions & Chapter 13
Chapter 13 bankruptcy, also referred to as wage earner's bankruptcy, is available to individuals who earn a reasonable income but are experiencing financial distress. In Chapter 13, the consumer will propose a structured repayment plan to the creditor to settle the debts with their future income. Once the court approves your Chapter 13 repayment plan, you can repay your debts within three to five years with your earnings.
Can Chapter 13 Stop Car Repossession?
Just like with Chapter 7, an automatic stay order is also activated once you file for Chapter 13 bankruptcy. Essentially, the injunction will prevent the car lender from repossessing the vehicle until the court confirms your repayment plan. The lender will be unable to repossess your vehicle provided that you repay all missed car loan payments and keep up-to-date with future payments.
Can You Get Your Car Back?
You can recover your vehicle after a repossession that was done before your Chapter 13 petition. To get your car back, you must make all missed payments in your repayment plan. In addition, you will continue making all monthly payments when required.
An experienced Colorado repossession attorney can determine the ideal way to stop a car repossession or explore your possible legal options to recover your vehicle after it has been repossessed.
Options If Your Car Has Been Repossessed
If your vehicle has been repossessed by the car lender, here are some possible ways to get your car back:
Pay off the full loan amount, including the repossession costs.
Negotiate a feasible repayment plan with the lender.
Attend an auction and bid to get your vehicle back.
A reliable lawyer can examine all the facts of your unique situation and help determine the best way to get your car back.
Work With Knowledgeable Bankruptcy Attorneys
Facing financial hardship and losing your car to repossession can be difficult and overwhelming. Car repossession can damage your credit score and affect your chances of getting a future loan. Therefore, if you are trying to stop a car repossession or if your vehicle has already been repossessed and you're thinking about filing for bankruptcy, consulting with a knowledgeable bankruptcy attorney is imperative.
At Kinnaird Law Firm, our attorneys have devoted their careers to offering outstanding legal services and protecting consumers against car repossession. As your legal counsel, we can educate you about your available options to stop the car repossession and determine whether bankruptcy is right for you. Even if your vehicle has been repossessed, our skilled lawyers will fight vigorously to protect your rights, negotiate a feasible repayment plan, and help you get your vehicle back.
Repossession Attorneys in
Colorado Springs, Colorado
If you want to know how to stop your car from being repossessed, contact Kinnaird Law Firm today to schedule a simple consultation. Our dedicated legal team can offer you the experienced legal guidance you need to make informed decisions. We're proud to serve clients throughout Colorado Springs, Douglas County, and El Paso County, Colorado.