Timing your bankruptcy filing with an experienced Dallas bankruptcy attorney is important, so if you receive any indication from the lender (such as a notice of default or a writ of sequestration), you should speak to a bankruptcy lawyer as soon as possible. You may have options if the vehicle has already been repossessed, but filing bankruptcy prior to the repossession is an easier process.
Alternatively, if you are behind on payments and unable to quickly cure the default, you might consider a chapter 13 bankruptcy, which would allow you 3 to 5 years to cure the default. Regardless of whether you file a Dallas Bankruptcy, Frisco Bankruptcy, Plano Bankruptcy, etc., your bankruptcy attorney should be able to advise you as to which chapter of bankruptcy fits your particular case the best.
If you are unable to cure the missed payments, make the regular ongoing monthly payments or the car is simply upside down (i.e. the value is less than the principal balance), you may choose to surrender the vehicle because it just doesn’t make sense to keep it any longer. Surrendering the vehicle must be done within 2-3 months after your case is filed, but the car loan debt remains covered by your bankruptcy discharge. So even if the lender sells the car after you surrender it for an amount less than what you owed, the deficiency balance goes away.
If you have questions about repossession and how it relates to bankruptcy, call our firm at (214) 609-8787 or click here.