Chapter 13 Bankruptcy can get your car turned back on.
Every year thousands of Alabamians decide to buy used cars from car dealerships that are commonly called “buy here, pay here” dealerships.
For car buyers whose credit isn’t good enough for a traditional loan or they simply don’t have any existing credit, the messaging from these dealerships can create an almost irresistible allure to buy a car from them.
“No credit, no problem!” “Down payments as low as $500!” “Buy here, pay here!”
DISCLAIMER: The following blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.
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Many residents of Auburn and Opelika, AL buy cars from these dealerships at a moment that they have a small pile of extra cash lying around. However, whenever the time to make payments on the loan comes around, buyers realize that the interest rate on their loan is ridiculously high.
The creditors at “buy here, pay here” car dealerships know that the individuals that they sell to are often going to be unable to finish making payments on the cars that they buy. So, many times creditors will install a GPS tracker or what’s called a “starter interrupter” in cars that they financed.
If debtors fail to make a payment, the car dealership will initiate the “starter interrupter” and shut the car off until they receive payment on the loan.
Chapter 13 Bankruptcy Can Get Your Car Turned Back On
Automatic Stay Orders
Whenever debtors file for Chapter 13 Bankruptcy, the court imposes an injunction to creditors that prevents them from taking any further action on you or your car. This injunction is called an “automatic stay.”
Modified Car Loan Payments
After the injunction is issued, you still may not be able to repay the original loan amount.
Depending on the restructuring of your debt under your Chapter 13 Bankruptcy plan, you may be able to avoid returning your car to the dealership by making smaller payments. This will help you keep your car while still making payments on the loan.
Chapter 13 Bankruptcy Protects You From Creditors
Sometimes debtors unfortunately still have to return their cars to the dealerships under Chapter 13 Bankruptcy. However, with Chapter 13 Bankruptcy, there is a real opportunity for you to be able to keep your car.
Chapter 13 Bankruptcy protects you from sitting helplessly at the mercy of creditors. In the case of “buy here, pay here” car purchases, Chapter 13 Bankruptcy protects you from the car dealership you bought your car from.
David S. Clark is a bankruptcy attorney in Opelika and Auburn, AL who has been helping clients keep their cars through Chapter 13 Bankruptcy for years.
Contact David S. Clark today for a free bankruptcy consultation!
DISCLAIMER: The above blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.