Can Bankruptcy Stop the Repossession Process?
Posted on 10 31,2016
Most people enter into loans and lease agreements with the full intention of fulfilling their obligations so they can retain possession of the items purchased. It is an unfortunate fact, however, that any number of unforeseen circumstances can lead to an individual falling behind on his or her credit card payments, loans, household expenses and other financial obligations. Even with the best financial plan, when circumstances change, it may be impossible to stay current.
One of the things consumers must be aware of is that as soon as they take out a loan to buy a car, rent furniture, lease a computer or secure any other possession using borrowed money, they become legally obliged to make the scheduled payments in a timely fashion. To help enforce payment, and prevent individuals from defaulting on these loans, most contracts now include clauses that allow the lender or financing company to use the item being purchased as collateral. This way, if the borrower falls behind on payments, the lender would have grounds to initiate legal action to recover the property.
If you have defaulted on a loan and you are being threatened with the repossession of your car, furniture, jewelry or other possessions, filing for bankruptcy is just one of many actions you could take to help stop the repossession process. To improve your chances of retaining your possessions, stopping the repossession process and putting a halt to all immediate collection efforts, we strongly advise you speak with a Virginia Beach bankruptcy lawyer at the David McCormick Law Group now. Our lawyers have represented more than 17,000 cases in the last 17 years and we take pride in helping clients find the best solution to help them resolve their financial problems. We are known for consistently delivering high-quality service and legal representation for those who are facing financial difficulties, and we look forward to providing you with the same level of service and dedication. Contact us right away to discuss your situation.