Keeping Your Property When Threatened with Repossession

Repossession

Keeping Your Property When Threatened with Repossession

Repossession is the potential result when you do not keep up with payments on property, such as vehicles or other goods. While it is perfectly legal for creditors to do so, you also have rights and remedies which you may pursue in order to retain possession of property.

It is important to act quickly when you receive notice of intent to repossess property, if not before. There are a number of steps you may take to prevent repossession of property in the state of Georgia. This is especially crucial when it comes to property, such as vehicles which are used to get to and from work or school.

Contact Creditors

Before it reaches the stage where the bailiffs are at your door, reach out to creditors to discuss missed payments. Repossessing property costs creditors money and they may not recoup the full value of the outstanding debt. As such, many creditors would prefer to work out a payment plan with the debtor in order to avoid going through the repossession process.

You can ask for an extension on missed payments or renegotiate the terms of the loan. In both cases you may incur fees or end up paying additional interest on the loan over a longer period. Before agreeing to a payment plan, make sure you have fully evaluated your finances to ensure you can afford the new payment amount.

Consolidation Loan

A consolidation loan will provide you with one monthly amount to pay, which may prove easier to manage than payments to multiple debtors. This option can also allow you to reduce the amount you pay overall, for a limited period of time. While taking out a consolidation loan does not wipe out your debt, it can effectively reset the clock so you are starting from an even footing.

Always carefully check the terms and conditions of consolidation loans to make sure the math works out. The last thing you want to do is end up with one large debt problem in place of many smaller debt problems.

Filing Bankruptcy

Filing Chapter 13 bankruptcy will allow you to pay down what you owe over a period of 3-5 years with a payment plan. You can also eliminate unsecured debt by filing for Chapter 7 bankruptcy. There are benefits to both; however, Chapter 7 bankruptcy is dependent upon meeting the required means test criteria. Which Chapter of bankruptcy will work best for you depends on the types and amounts of income, assets, and debts you have. Each person’s individual circumstances must be considered.

When you file for bankruptcy, a stay of collection is issued by the court preventing creditors from pursuing most debts. It is important to discuss bankruptcy as an option based on your unique financial circumstances with a qualified professional in the state of Georgia. H. Lehman Franklin can provide excellent debt management advice and consultation on bankruptcy as an option for preventing repossession of property. You can call the offices of H. Lehman Franklin today at 912-764-9616 for a consultation with a lawyer who has extensive experience in assisting clients seeking to avoid property repossession. You can also email us at info@hlfranklin.com. We look forward to helping you see a brighter financial future, free of uncontrollable debt.