Repossession

As a resident of New Jersey, you are well aware that a vehicle is a necessity. Public transportation is scarce. Without a car, you cannot get to work, school or to the local supermarket. If you are having trouble making your car payments, the lender will eventually repossess your car and place it on their lot. You will receive a letter from the lender requesting a payoff amount or an amount necessary to reclaim the car. You usually have about 15 days to reclaim the car. If you cannot afford to pay, the vehicle will be sold. The previous payments that you made to the lender will be rendered useless. There are currently a record number of cars being repossessed in New Jersey for non-payment.

If you have missed a car payment and are threatened by the possibility of repossession, contact us immediately, we can help! Filing a chapter 7 bankruptcy will stop any repossession efforts by the lender. Since a chapter 7 bankruptcy will wipe out your unsecured debts, you will be in a better position to repay your other debts (e.g. car loan, student loans). A car loan is considered a secured debt. If you want to keep your car when filing for a chapter 7 bankruptcy, we can "reaffirm" the loan in your bankruptcy petition. Most lenders will allow you to keep your car as long as you continue to make the payments on time.