Greenbelt, Maryland Repossession Defense Attorney

Bankruptcy Lawyer Helping Prevent Repossessions in Greenbelt, MD

When debt becomes overwhelming, many people worry about the potential loss of their property. Vehicles or other items may be repossessed when payments fall behind. This can leave family members without reliable transportation, which can affect their ability to work and take care of other daily responsibilities. Fortunately, bankruptcy offers a powerful tool to protect against repossession, and it may even help recover property that has already been repossessed. At The Law Office of Donald L. Bell, we work with clients in Greenbelt, Maryland and the surrounding areas to address concerns related to different types of debts. We will advise you of your options for safeguarding your assets and help you take steps to regain control of your financial situation.

How Filing for Bankruptcy Can Prevent Repossession

One of the most immediate benefits of filing for bankruptcy is the automatic stay, which is a legal protection that halts most collection activities, including repossessions. Once a bankruptcy petition is filed, creditors are prohibited from taking further action to collect debts or seize property. This automatic stay can provide temporary relief from repossession efforts, giving you the time to address your financial situation without the fear of losing your property.

Recovering Property After Repossession Through Bankruptcy

In some cases, a repossession may have already occurred before filing for bankruptcy. Depending on the timing and circumstances, bankruptcy may still provide a path to recover a vehicle or other property. If the property has been repossessed but has not yet been sold at auction, it may be possible to retrieve it through bankruptcy. The automatic stay will halt the auction process, and certain types of bankruptcy filings can allow missed payments to be made up so that the repossessed item can be returned.

For instance, if your vehicle has been repossessed, the lender must wait before selling the car at auction. During this window, filing for bankruptcy can stop the sale and provide you with time to bring the loan current through a repayment plan. The Law Office of Donald L. Bell can help you explore your options for retrieving repossessed property and structuring payments that will allow you to keep important assets.

Addressing Repossession Through Different Types of Bankruptcy

The right option for addressing repossession concerns will depend on your financial circumstances and the type of debt involved. You generally have two options when filing for bankruptcy. Each offers different advantages, and The Law Office of Donald L. Bell can help you determine the best approach based on your situation.

Chapter 7 Bankruptcy

Chapter 7 bankruptcy will allow you to discharge unsecured debts like credit card balances and medical bills. While Chapter 7 is not designed for long-term debt restructuring, it does provide immediate relief through the automatic stay, which can prevent repossession during the bankruptcy process.

For a secured debt such as a car loan, Chapter 7 may not eliminate the obligation to make payments, but it can offer a reprieve from immediate repossession. If you can pay off the past-due amount or negotiate an agreement with the lender to modify the terms of the loan, it may be possible to retain ownership of the property. Additionally, some property may be exempt from liquidation in Chapter 7, meaning that you may be able to keep essential assets like your vehicle after discharging your debts.

Chapter 13 Bankruptcy

Chapter 13 bankruptcy is often the most effective solution for preventing repossession, because it allows you to restructure your debts and create a repayment plan. Under Chapter 13, you can pay off past-due payments and other types of debts over a period of three to five years, allowing you to keep your property and avoid repossession.

One of the key benefits of Chapter 13 is that it allows you to reorganize secured debts, including a car loan, into manageable monthly payments. In many cases, you can include any past-due amounts in your Chapter 13 repayment plan, effectively resolving the default and stopping the threat of repossession.

Some of the key advantages that Chapter 13 can provide when dealing with repossession include:

• Repayment of Missed Payments: Chapter 13 may allow you to repay missed payments over time while maintaining current payments on secured debts and preventing future repossessions.
• Retention of Property: When you file for Chapter 13 bankruptcy, you may be able to keep your vehicle and other property, even if you have fallen behind on payments.
• Cramdown of Loan Balances: In some cases, Chapter 13 bankruptcy may allow you to reduce the balance owed on a loan to the current market value of the property. This can be particularly useful for cars or other assets that depreciate over time.

At The Law Office of Donald L. Bell, we can work with you to determine whether Chapter 13 bankruptcy is the right choice for stopping repossession and restructuring your debts in a way that will provide you with long-term relief.

Contact Our Greenbelt, MD Bankruptcy Lawyer for Repossession Defense

If you are concerned about repossession or have already had property taken due to missed payments, filing for bankruptcy may provide the relief you need. At The Law Office of Donald L. Bell, we help people in Greenbelt and the surrounding communities stop repossessions and develop strategies to protect their assets. Contact us today at 301-614-0535 to schedule a free consultation and take steps to resolve your financial concerns and avoid repossession or other related issues.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.