Your lender may warn you via correspondence that repossession is possible. But no lender will warn you beforehand that they are about to take the vehicle. The repo man wants to repossess without confrontation.

How to prevent vehicle repossession

Get caught up on your payments. Prioritize your vehicle payment over medical bills, credit cards, and other types of unsecured debts. To come current, you will also need to pay any late fees and added penalties. You are not fully caught up until your balance is zero. Curing the default is the surest method to stop a repo.

Negotiate with your lender. Many lenders allow one or two missed payments over the life of a loan. Missed payments will not simply be forgiven. Instead, your lender may “tack” them on to the end of your loan. Many lenders also offer payment deadline extensions and catch-up plans. If you are unable to make your monthly payment, contact your lender and see what options they have to offer you.

Sell the vehicle. If you can sell your car before it is repossessed, invariably you will obtain a better price than the lender will get at a repossession auction. You will also avoid having to pay for the repossession costs, storage, and other miscellaneous auction expenses.

Voluntarily surrender the vehicle. If you are able to obtain an anti-deficiency agreement with your lender, voluntarily surrendering the vehicle may make sense. Do not, however, simply hand over the vehicle to your lender without obtaining an agreement in writing. While you may save some of the costs of repossession (like towing charges) you waive many of your defenses in a later deficiency lawsuit.

File for bankruptcy protection. Once you file bankruptcy, no creditor can take any action against you or your property. That includes repossession. Unless you are able to come current on the payments, a Chapter 7 bankruptcy may not prevent vehicle repossession for more than a couple of months. But a Chapter 13 bankruptcy allows you to spread out the missed payments for as long as five years.

Once a repossession takes place

Even after a repossession has taken place, you may be able to get your vehicle back, but you must act quickly. Filing bankruptcy before the creditor sells the vehicle will stop any scheduled auction and allow you to get the vehicle back. But you will need to make arrangements for payment on the loan. Only bankruptcy can force a lender to return a repossessed vehicle.

After the vehicle has been auctioned off, there is no way to get it back. If the auction proceeds turn out to be less than the amount you owe, then your creditor will file a lawsuit against you to obtain a deficiency judgment. At that point, your credit report will show both a repossession and a lawsuit.

Debt Collection. If you have a debt in collection, you have rights. You’re likely going to want to hire a lawyer to enforce those rights. If you have many debts in collection, consider bankruptcy. If you have just a few debts, however, consider hiring an attorney to settle the debt.

Foreclosure. If you are in preforeclosure, act quickly to preserve your options. If you have a foreclosure auction scheduled, you only have two options: reinstate the loan or file bankruptcy. Timing is incredibly important in foreclosure cases. Contact an attorney immediately if you default on your mortgage.

Repossession. If you are facing repossession, you have options before the vehicle is repossessed. Afterwards, not so much. If you have a debt resulting from a former repossession, you can eliminate that debt in a Chapter 7 bankruptcy. If you want to stop a repo before it happens, a Chapter 13 bankruptcy may do the trick.

Garnishment. Garnishment can often severely impact your monthly finances, and garnishment reflects very negatively on your credit score and credit report. Often, the only way to terminate a garnishment wage order is by filing bankruptcy.

Taxes. If you withhold too little from your paycheck, you will get more money with which to pay your bills. But artificially increasing your deductions creates a tax liability for you at the end of the year. We can help you identify which deductions are appropriate for you. And we can help you determine which taxes may or may not be forgiven.

Lawsuits. You could spend thousands of dollars defending a lawsuit that you’re sure you will win. And then you might lose. In many cases, it makes sense instead to moot the suit in bankruptcy. On the other hand, it could make sense to fight the suit and attempt to settle. Talk to an attorney. Don’t try to handle a lawsuit on your own.

Student Loans. You may be in deferment or forbearance right now. But when your monthly student loan payment comes due, will you be able to pay it? Student loans are not dischargeable in a Chapter 7 bankruptcy. But paying your student loans in a Chapter 13 bankruptcy allows you some breathing room to pay your other debts.

Lee Legal Can Diagnose Your Financial Condition

Financial problems don’t solve themselves. Many financial problems aren’t even obvious problems at first. Don’t try to self-diagnose your condition. Seek out an objective analysis and generate a plan unique to your circumstances and goals. Call Lee Legal to schedule your financial diagnosis.

Worrying about losing your car or home can keep you up at night. And debt collectors can make you afraid to answer your phone. Luckily, the law provides some vital debt relief programs for people struggling with debts they can’t pay: bankruptcy. Lee Legal encourages borrowers in the Washington, DC region to reclaim their lives with a Chapter 7 bankruptcy.

Get a second chance at life with bankruptcy

In a Chapter 7 bankruptcy, you can completely discharge your unsecured debts if you are unable to repay them. You can completely eliminate medical bills, credit card debt, court judgments, and penalties from overdrawn bank accounts. Chapter 7 eliminates many other types of debts, too. The court will immediately order your creditors to cease all collection efforts, which puts a stop to those bill collector phone calls, garnishment proceedings, and even foreclosure and repossession efforts.

Filing for bankruptcy in the DC area is a complex process, but Lee Legal has the experience to guide you all the way through the process. We make sure all of your eligible debts are discharged without putting any of your property at risk. We will also help you navigate the means test, which determines whether you’re a candidate for a Chapter 7. And we will advise you of your other options if Chapter 7 bankruptcy isn’t right for you.

Call us today for your second chance

Visit Lee Legal Washington, DC online now to learn more about their debt relief options, or just call (202) 448-5136 for a consultation with a bankruptcy lawyer today. Get a second chance at life with bankruptcy. You’ll be glad you did.

When Should You File for Bankruptcy?

Bankruptcy is not appropriate for every situation. But if bankruptcy is right for you, we will help you decide on the right time to file. Experienced bankruptcy attorney Brian Lee suggests that you initiate the process when:

You are facing garnishment. A wage garnishment is usually imposed when a creditor has no other way to recover on a debt. Garnishment allows a creditor to automatically withdraw a portion or all of your paycheck. In most cases, garnishment means that you will continue to work but will not have the ability to pay monthly bills. By filing bankruptcy, you will put an end to wage garnishment, and whatever you earn or buy after filing bankruptcy will be yours to keep.

Foreclosure is imminent. A foreclosure defense lawyer can help you keep your home and rearrange the payment plan with a Chapter 13 bankruptcy. The key though, is to file before a foreclosure notice is filed.

Your vehicle is at risk of repossession. You can prevent repossession if you fall behind on payments. A Chapter 7 or Chapter 13 bankruptcy can stop repossession and give your attorney the chance to negotiate with the creditor so you can keep your car. You should file the bankruptcy in advance of repossession. That will save you repo fees and costs. You must file before the creditor auctions off the car or it will be too late.

You get sued. If a creditor has sued you, do not simply accept the default judgment. The automatic stay, which takes effect once a bankruptcy is filed, prevents creditors from calling or carrying out any other actions against you due to debts owed. Bankruptcy will cease all creditor enforcement action, including lawsuits.

Bankruptcy is not for every situation

Other extenuating circumstances that call for a speedy bankruptcy filing include divorce, unemployment, medical expenses and delinquent taxes. These scenarios often leave debtors worried about their financial futures. Many times it will make sense to file well before any of these scenarios happen. Be proactive. Don’t wait for something bad to happen before you take the first step.

When should you file for bankruptcy? Lee Legal of Washington, DC will explain the pros and cons and cater a unique solution to your specific situation, whatever your circumstances may be. To find out more about the types of bankruptcy or to schedule a consultation, call us at (202) 448-5136 today.

Don’t rearrange the deck furniture on the Titanic. Instead, realize it may be time to jump ship.

You may have stopped answering your phone because you know could be another bill collector. You may have stopped opening your mail because you know it’s just another bill. Perhaps you’re parking your car around the block or on a different street, hoping the repo man won’t find it. You may even be reluctant to open your front door, afraid that it may be a process server with a lawsuit or garnishment in hand.

When to consider filing bankruptcy

Most people know when it’s time to consider bankruptcy, but they put it off anyway. Here are several indicators of when to consider filing bankruptcy and get your finances back on track:

• Have you stopped paying bills? Even if you can’t pay a debt, you can’t simply ignore it forever. You’re damaging your credit and incurring interest and late fees. Bankruptcy eliminates debt.
• Facing home foreclosure or car repossession? These events, not a bankruptcy, are what will truly devastate your credit. Moreover, your creditor will file a lawsuit later on to recover the deficiency from the resale of home or vehicle. Bankruptcy stops both foreclosure and repossession.
• Hit with a lawsuit, garnishment, or levy? If it takes a court order to force you to repay a creditor, then it is very likely you are unable to pay that creditor. Garnishments usually take many years to fully satisfy a debt. Bankruptcy puts a stop to lawsuits, garnishments, and levies.
• Making only minimum payments? If you have more debt than you can pay off in the foreseeable future, it’s time to either restructure or eliminate your debt. You’ll never pay off your balances by making minimum payments.

Call Lee Legal to discuss your options

Ask yourself whether you want more of the same or whether you’re ready to take control of your future. Ignoring debt doesn’t make it go away. You have to deal with it.

If you are considering filing bankruptcy in Virginia, Maryland or Washington, D.C., call Lee Legal at (202) 448-5136 for a free consultation.

Vehicle finance agreements are usually rock solid, and the finance company has all the power. Car repossession can happen without advance warning and without going to court. The finance company will take every measure necessary to repossess your car. They call it “securing the collateral.”

Lee Legal can assist you if you are facing repossession.

The Repossession Process

Once your car is repossessed, your creditor will sell the car at auction. Usually, the vehicle sells for a dramatically reduced price. Laws require creditors to ask for a fair price for a car, but a fair price is not the market price. You will owe the difference between the car note and the auction price. The auction will take place quickly, typically about 10 days after repossession.

Once the car is auctioned off, the car company will sue you for the balance. Losing your vehicle is tough. But owing even more on a vehicle you no longer own can be devastating.

If your creditor sues you, the court will notify you of a hearing date. Once you receive notice, you should immediately contact a knowledgeable car repossession defense attorney.

Repossession Can Be Costly

The repo truck man may be working off outdated information. Or a finance company representative may not have correctly entered information from a recent call. Some repo companies even charge borrowers for the cost of retaining the personal property removed from the car at the time of the repo. Every car repossession compound charges a daily “storage fee” (or lot fee or impound fee) for every day the vehicle is parked in their lot.

Even if there was some mistake, repossession of your vehicle can be expensive to you. The headache, inconvenience and costs often come altogether at the worst time.

The best way to prevent repossession of a car is to stop it before it happens. But if a repossession does happen, you should act quickly to minimize the damage.

Stop Car Repossession

In many cases, we can negotiate alternative arrangements for repayment on a delinquent loan. Negotiation prior to car repossession usually produces the best outcomes.

If the car repossession has already happened, a Chapter 7 bankruptcy can eliminate the debt you owe for the deficiency or judgment.

But if you still have possession of the car, stop car repossession before it happens. Chapter 13 bankruptcy automatically stops certain creditor actions, and that includes repossession. The bankruptcy will legally “stay” your creditor from seizing the vehicle. We may also be able to use Chapter 13 bankruptcy to restructure your vehicle loan and propose a more manageable repayment schedule.

Emergency Bankruptcy and the Automatic Stay

The whole reason to file an emergency bankruptcy is to invoke the protection of bankruptcy’s Automatic Stay. The Automatic Stay immediately stops any collection efforts against the bankruptcy filer, including home foreclosure, vehicle repossession, eviction, wage garnishment, execution sale, tax levy, or utility shut-off. As implied by its name, the Automatic Stay takes effect automatically. Any creditor actions that take place after the automatic stay are void by law. The Automatic Stay protects your property and interests until you can complete and file the rest of the forms.

Lee Legal has assisted in numerous emergency bankruptcy filings. In cases where an emergency bankruptcy is necessary, it is critical that you work quickly and closely with your attorney. Completing the required paperwork and documentation is usually a intensive effort. And an emergency bankruptcy, by its nature, has more pressing deadlines than a regular bankruptcy filing. It is crucial that you return your lawyer’s calls and quickly respond to his or her request for documents.

If you live in Washington, D.C., Maryland or Virginia and want to prevent foreclosure or garnishment, or to stop repossession of a vehicle, you must act quickly. Contact an experienced emergency bankruptcy attorney to discuss your situation.

The Automatic Stay Immediately Stops All Creditor Activity

Contained in the bankruptcy code at 11 U.S.C. § 362, the Automatic Stay acts as a legal injunction, halting all creditor actions immediately at the moment the bankruptcy petition is filed.

Foreclosure. The Automatic Stay stops a foreclosure auction if your home is scheduled for a foreclosure sale. If the he mortgage company conducts the auction anyway, the sale is void ab initio, in other words, as if it never took place.

Lawsuits. If the creditor sued you prior to the bankruptcy, the lawsuit will be stopped (or “stayed”) pending the outcome of the bankruptcy. If you file bankruptcy prior to a lawsuit, the creditor may not sue you without first seeking permission from the bankruptcy court.

Repossession. If you still have possession of your vehicle, the Automatic Stay will prevent the creditor from repossessing it. Your bankruptcy legally enjoins the creditor from seizing the vehicle.

Collection calls or correspondence. While you are under bankruptcy protection, your creditors may not contact you or attempt collection on any debt. Once the Automatic Stay is in place, creditors cannot call your home, cell phone or place of work. Creditors may not send you mail in an attempt to collect on a debt.

Garnishment. Creditors cannot collect on judgments or pursue new collection actions. If the creditor has garnishmed your wages, the garnishment must stop immediately. While you are under bankruptcy protection, creditors may not lien against your property or levy your bank accounts.

Eviction. In most situations, the Automatic Stay stops eviction. Bankruptcy stops eviction in almost every case, but not if your landlord has already obtained a writ of possession.

The Automatic Stay Lets You Breathe Easy Again

When you’re facing legal action and time is running short, it’s not always easy to make the best decisions. Because the Automatic Stay immediately stops all creditor activity, you can catch your breath and think things through.

In short, the Automatic Stay buys you some peace of mind by immediately ceasing all collection efforts and creditor harassment. If a creditor, creditor’s attorney, or collection agent violates the Automatic Stay, then they run the risk of sanction by the Bankruptcy Court. Penalties for violating the Automatic Stay include monetary damages and attorney’s fees.

An experienced bankruptcy lawyer can explain to you how the Automatic Stay will work in your case. Get your creditors off your back. Give Lee Legal a call at (202) 448-5136.

Bankruptcy Solves Problems

Bankruptcy often results after a life-altering event: unemployment, illness, family hardship, divorce. These times in our lives are extremely stressful. Bankruptcy could help you to extricate yourself from otherwise intractable circumstances.

Whether you’re facing foreclosure, paying an unaffordable garnishment, getting sued by creditors, or just seeking to improve your credit profile, bankruptcy solves many different types of problems. This is the top reason that people file bankruptcy. The automatic stay and the bankruptcy discharge are powerful legal tools that solve problems.

Bankruptcy Reduces Stress

Calls and correspondence from debt collectors can develop into a major problem. Creditors will call you at home and at work. And with the recent rise of skip-tracing, they will also call your family, friends, neighbors, and colleagues. Creditors generally relentlessly pursue payment despite specific financial hardship or circumstance.

Filing bankruptcy puts an immediate stop to creditor calls and correspondence, no excuses, no muss, no fuss. If a creditor contacts you while you are in bankruptcy, then that creditor has violated an order of the court. We will sue that creditor for damages and attorneys fees.

Taking a proactive approach to solving your financial problems will be a big relief. From the moment you file bankruptcy, your creditors must cease all attempts to collect on debts. All repossession, garnishment, and foreclosure efforts must cease immediately. All lawsuits are halted, or stayed. The very act of filing bankruptcy can relieve you from an enormous amount of stress.

Bankruptcy Gives you a Fresh Start

Some debts, like student loans and child support, cannot be eliminated by a Chapter 7. Some people make too much money to qualify for a Chapter 7 bankruptcy and must instead file a Chapter 13 and submit a repayment plan. Whatever form of bankruptcy you file, the fundamental goal is to restructure your finances and to free you from debt. Filing bankruptcy can be a difficult decision, but the benefits often outweigh any potential downside.

If you are considering filing bankruptcy in Washington, D.C. or Maryland or Virginia, call Lee Legal at (202) 448-5136 to schedule a free consultation.

In fact, certain recurring circumstances lead people to file bankruptcy. Here are the top ten reasons for bankruptcy.

1. Debt

The primary goal of bankruptcy is to eliminate debt. In bankruptcy terminology this is known as a “discharge” of debts. By the time your bankruptcy case is closed, all or most of your debt should be eliminated.

2. Foreclosure

If your mortgage company has sent you a notice of foreclosure sale, you must act quickly. But bankruptcy stops foreclosure. If you want to keep your property, we will work together to find a repayment plan that works for you. If you are ready to let the property go, bankruptcy will discharge a possible deficiency judgment.

3. Job Loss

Even in a good economy, unemployment remains a common reason to file bankruptcy. Loss of income is often devastating. Instead of exhausting your savings or taking on more debt, consider bankruptcy as an option before you start a new position.

4. Lawsuit

Bankruptcy may be a good choice if you are facing a lawsuit for high damages. Bankruptcy effectively ends most lawsuits. And you could save a ton of money on legal fees. Consider bankruptcy if you are expecting a judgment and act before the judgment is entered.

5. Garnishment

Bankruptcy stops wage garnishment, and bankruptcy stops bank account attachment. Garnishment can make it impossible to pay your monthly bills. Bankruptcy immediately ceases garnishment. Either address the creditor on a more level playing field through Chapter 13, or discharge the creditor in Chapter 7.

6. Repossession

Car companies are quicker to repossess than mortgage companies are to foreclose. If you have missed payments on a vehicle, bankruptcy stops repossession. You can choose to repay the arrearage over time, or surrender the car in an orderly way. If you are facing repossession, you must act quickly to avoid excessive towing and storage fees, or worse, auction of the vehicle.

7. Debt Collection

Collection agents can be rude and relentless. Now, with the advent of skip-tracing, no one can evade debt collection. Creditors will call you incessantly at work, at home, and on your cell phone. Bankruptcy immediately stops debt collection.

8. Medical Bills

An unforeseen illness or accident can feel ruinous. Monthly payments often fall to the wayside when a family member faces the choice of either paying a creditor or health care. Bankruptcy may actually improve your credit if you owe large medical bills.

9. Student Loans

In most cases, student loans cannot be eliminated by bankrupcty. Student loan companies will try to establish with you the highest monthly payment possible. Bankruptcy can not only help you consolidate your student loan debt, but allow you to make a reasonable monthly student loan payment based on your disposable income.

10. Creditor Challenges

Sometimes creditors attempt collection on accounts that have already been paid. Creditors also often seek payment amounts higher than what you actually owe. Bankruptcy allows you to challenge miscalculated and fraudulent claims. And bankruptcy forces a creditor to prove via admissible evidence what you actually owe. Bankruptcy actually offers an extremely robust forum in which to challenge creditor claims.

If You are Facing One of the Top Ten Reasons for Bankruptcy

Do any of the reasons apply to you? Do you have a completely different reason? If you are considering filing bankruptcy, call an experienced bankruptcy attorney to discuss your options.