Many Illinois residents have run into difficulty making their monthly car or truck payments in an economy that has yet to fully recover from the recession, and losing a vehicle to repossession often makes getting to and from work a challenge for them. If you are in this situation, there are ways that an experienced bankruptcy attorney could help you to keep your car. There may also be a means of getting your vehicle back if it has already been repossessed.
Many lenders in Illinois take action quickly when vehicle payments are not made on time. Automobiles, SUVs and pickup trucks depreciate quickly, and loan companies sometimes seek to recover whatever they can on a delinquent account as quickly as possible. If you are struggling to keep up with an auto loan, you could potentially face repossession even after missing just one payment.
A loan company could also seek a deficiency judgement against you after repossessing and disposing of your vehicle. This type of legal action is taken when the amount the vehicle is sold for is not enough to pay off the loan balance. Filing a personal bankruptcy could possibly lead to a repossessed vehicle being returned to you, or it could prevent the repossession from occurring in the first place.
An unexpected layoff or illness can quickly lead to monthly obligations such as car payments becoming unmanageable. When you are facing a situation like this, you are likely aware of how unforgiving and persistent debt collectors can be. If you would like to learn more about how a Chapter 7 or a Chapter 13 filing could provide you with relief from creditor harassment and avoid a repossession, please visit our page containing more information about the subject.
Source: Sulaiman Law Group, LTD, "Chicago Auto Repossession Lawyer", November 03, 2014