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Scura, Wigfield, Heyer, Stevens & Cammarota Blog

Why Do I Still Owe Money After A Foreclosure Or Repossession?

Commonly, we receive calls from potential clients asking why they owe money to a creditor after their home was sold at a sheriff’s sale or a lender repossessed their automobile. Generally, the potential client is referring to a deficiency judgment.

If a debtor’s mortgage lender forecloses on a home, or if a car lender repossess a automobile for missed payments, and the lender cannot resell the property to satisfy the originating loan, then the debtor may be required to pay the “deficiency”. This can be terrifying, because many individuals believe that the sheriff’s sale or repossession was the end of any collection efforts.  Luckily, filing for bankruptcy can eliminate your personal liability for a deficiency judgment.

Bankruptcy Is An Option to Deal with Debt From a Vehicle Repossession

If you have recently had a vehicle repossessed, you are probably feeling overwhelmed at the prospect of a large debt hanging over your financial future.  Vehicle lenders tend to be aggressive in their collection techniques, so it is likely that harassing phone calls will commence soon after the repossession.  Often, the vehicle lender will commence litigation to try to recoup their losses against the borrower after the repossession.  If you are in this situation, then bankruptcy may be your solution.

How to Stop Vehicle Repossession in New Jersey

Bankruptcy Can Stop Repossession

Banks and auto dealerships will not hesitate to repossess your car if they think that you can no longer afford it. Some lenders will initiate repossession after you miss just one car payment.

Filing for bankruptcy protection can prevent repossession and give you an opportunity to catch up on what you owe. It may even be possible to refinance your auto loan through a Chapter 13 filing. The lawyers of Scura, Wigfield, Heyer & Stevens, LLP, can explain your rights and take action to save your car from being repossessed.

Know Your Options When Facing Vehicle Repossession in New Jersey

Vehicle repossession is a significant hardship in a mobile society built on the automobile. When creditors repossess a car, it makes everyday activities difficult, if not impossible, for the car owner. However, it is possible to avoid having a vehicle repossessed by filing for bankruptcy.

How to Stop Auto Repossession with Bankruptcy in New Jersey

cars in parking lotBankruptcy Can Stop Auto Repossession

Banks and auto dealerships will not hesitate to repossess your car if they think that you can no longer afford it. Some lenders will initiate repossession after you miss just one car payment.

Bankruptcy Forces Creditor to Return Repossessed Car

There is no doubt that once a bankruptcy is filed, a creditor is prevented from repossessing a debtor's vehicle. What is not as well known, however, is that when a secured creditor repossesses a debtor's car before the bankruptcy is filed that the debtor can still have the car turned back over and save it.

Should You Keep or Walk Away From Your Car Loan After Bankruptcy?

Many people have questions about what to do with their car loan during bankruptcy. There are a few different options, so make sure you know the details before you make a decision.

When filing for bankruptcy you have a choice of what you may do with your vehicle:

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