Johnston, Iowa, in Polk County, is one of several thriving cities that make up the Des Moines metroplex. The residents of Johnston, Iowa have trusted Marks Law Firm for over 20 years to help protect important assets through both Chapter 7 and Chapter 13 bankruptcies. They know that bankruptcy can help stop repossession efforts, garnishments and save other valuable assets from collection efforts.
If a repossession is looming because you are behind on a car loan payment, then you may need to bring them current for a Chapter 7 to be viable. This is something you and one of our experienced attorneys will discuss in-depth before deciding what option is best for you.
If Chapter 7 bankruptcy is the best path for you to regain financial stability, reaffirming the vehicle loan and continuing to make the payments until it is paid off will be the plan of action your attorney recommends. “Reaffirmation” is a process of making an agreement between the lender, you, and your attorney to verify budget numbers and let the Court know of your desire to keep the vehicle.
Simply put, this process reattaches the liability between the lender and yourself. This is necessary because of the automatic protections that go into place for the debtor upon the filing of bankruptcy as well as the discharge of debts that occurs at the closing of the case. By reaffirming your debt, your lender gets reassurance of your continued commitment to send payments, and you get to keep your vehicle if you continue to make timely payments. You also preserve your right to receive the title to your vehicle once the lien is satisfied. Reaffirmation agreements are another tool your bankruptcy attorney can utilize to your advantage after reviewing your case with you.
However, with a Chapter 13 bankruptcy, reaffirmation is not required due to the Chapter 13 having a built-in solution for keeping assets. If you are behind on your loan payments, then your plan will have a proposal to keep and pay for the vehicle and catch up the arrears. If the vehicle has already repossessed for non-payment, then your attorney can see about getting it back once your Bankruptcy petition is filed. This may include paying the cost of recovery and storage fees if any were incurred. It can be more difficult if the creditor has already repossessed the collateral but is a sometimes a possibility. If this is your situation call our firm today at (515) 276-7211 because the sooner you do, the sooner we can determine the best course of action to protect your assets. Don’t wait too long and then be at a disadvantage with such a critical item.
Marks Law Firm is based in Des Moines and has handled numerous cases that have helped the nearby residents of Johnston, IA retain their valuable assets and reset their financial health. Call us today at
(515) 276-7211 to schedule a free consultation with an experienced attorney.