Car loans are notoriously complex, and some sellers are less than forthright about the loans they sponsor. If you are having a hard time keeping up with your car payments, there are things you can do to help you get a better handle on the situation – and to help you keep your vehicle. An important first step in the process is reaching out to an experienced South Carolina bankruptcy attorney as soon as you recognize that there’s a problem.
Your Car Loan
While there are important federal and state laws in place to help protect consumers who purchase cars, too many lenders stretch these laws to the limit, and car loans can become exceptionally burdensome. If you can’t keep up with your car payments and, as a result, you believe your car may be in jeopardy of repossession – or if repossession is imminent or has already happened – time is of the essence, and you shouldn’t wait to consult with a focused bankruptcy attorney.
If Your Car Is Repossessed
If your car has already been repossessed, it’s important to know that, in South Carolina, you have ten days to pay off the repossessed vehicle before it can be sold to someone else. If you can’t afford to pay off the debt, which is likely at the root of the problem in the first place, bankruptcy may be able to get you back behind the wheel of your vehicle and make your payments more manageable – but you’ll need to act fast.
Chapter 7 Bankruptcy
Chapter 7 bankruptcy is called liquidation bankruptcy, and it allows filers to keep specific assets – up to a certain value – while offloading unsecured debts like credit cards and medical bills. Chapter 7 is only appropriate, however, if you earn less than the set financial cap and you have less than a specific amount of equity in the vehicle in question. If you’re a higher earner and have higher assets, Chapter 13 bankruptcy may be a better option.
Chapter 13 Bankruptcy
Chapter 13 bankruptcy amounts to a financial reordering that allows you to retain your primary assets, like your car, but requires a debt repayment plan that lasts from three to five years. Because Chapter 13 allows debt restructuring, your seasoned bankruptcy attorney may be able to negotiate better terms for your car loan that you’re better prepared to handle.
It’s Time to Consult with an Experienced South Carolina Bankruptcy Attorney
When it comes to your vehicle, it’s important to keep in mind that things will move very quickly if it is repossessed. If you’re having trouble keeping up with your car payments, consulting with a dedicated bankruptcy attorney sooner rather than later is always advised, and at Reed Law Firm in South Carolina, we’re standing by to help. To learn more, please don’t put off reaching out and contacting us online or calling 803-784-1517 in Columbia or 843-920-2094 in Florence today.
