Kain & Scott is open and fully staffed during our normal hours! UPDATE: Starting June 1, 2020 Kain & Scott will offer in-person initial consultations and review and sign appointments for those who are willing to use hand sanitizer and wear a mask while in-office (one will be provided to you if you don’t have one). In-person appointments are only available to guests who are not sick on the date of the in-person appointment and who have not had Covid 19 symptoms in the last 14 days from the appointment date. Any in-person appointment can be easily converted to a phone, Skype, Face Time, or Zoom appointment if necessary. For those who prefer, we can still do the initial consultation and review and sign appointment by phone, Skype, Face Time, or Zoom.

How to Prevent Car Repossession

If you've fallen behind on your car payments, your creditor may have the legal power to take possession of the vehicle without notifying you. One way some people have stopped car repossession is filing bankruptcy.

Filing bankruptcy may:

Stop car repossession and allow an owner to retain his/her vehicle, stop creditor lawsuits, and reduce car loan monthly payments/interest.

Cars in Chapter 7 Bankruptcy

In Chapter 7 bankruptcy, some owners keep their vehicles and continue making payments, while others surrender the vehicle to eliminate debt.

Reaffirming the Debt

One option in Chapter 7 bankruptcy is to reaffirm the automobile loan. This is done with a reaffirmation agreement, which is a voluntarily contract between the debtor and the car loan creditor.

In this agreement, the debtor agrees to pay the balance owed on the car loan. As long as the payments on the vehicle are made as promised, the vehicle will not be repossessed. However, reaffirmation of debt is not required.

Generally, debt that is reaffirmed is not discharged under Chapter 7 bankruptcy. If car payments are not made after the debt is reaffirmed, the creditor may repossess the vehicle and sue for any deficiency balance after the car is sold at an auction.

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