One of the worst parts of being in financial trouble for many people in Florida is auto repossession. If you can’t make your car loan payment, your vehicle can repossessed.
Losing your car can be frightening, stressful and embarrassing. For many Floridians, losing a car can devastate their ability to work, get the children to school and to buy the essentials of life.
Fortunately, one of the many benefits of Florida bankruptcy is that filing can halt all repossession actions temporarily. Let’s take a closer look at repossession laws in Florida so you understand how it works. If you’d like to speak to an attorney in the Tampa area, call (813) 990-7944.
Florida Auto Repossession Basics
Your creditor has the legal right to seize your vehicle when you have defaulted on the loan. Once you are defaulted, the vehicle may be repossessed at any time, without notice. They may come onto your property to seize it, too. Still, the creditor is banned from using actual, physical force or a threat of force to seize your car.
Stopping The Repo Man In His Tracks!
When you retain us to file your Florida bankruptcy petition, you may be immediately protected by an automatic stay. This can halt all creditor collection actions. Which would inlcude any car repossession efforts, lawsuits, bank account seizures and wage garnishment. The initial bankruptcy filing provides us with the time we need to review your legal options regarding your auto and other property.
In some cases, depending upon the value compared to what you owe, you may want to surrender it anyway. This is known as voluntary repossession. But this depends upon the situation.
Keep in mind that if you do surrender the vehicle, you will still owe the lender the balance on the loan. Luckily, filing bankruptcy can take care of this problem. In fact, many people often declare bankruptcy in large part because of a deficiency on a car loan. After the bank repos the car and sells it off, there is often a large deficiency of $4000 to $10,000 or more. This is too much cash for the lender to not to try to recoup. They will probably come after you. But again, declaring bankruptcy can be a solution to this problem.
Call Us for Help Today
If you are feeling the heat of a Florida repossession, we urge you to not delay. Never wait until the repo man or woman is banging on your door at 6 am. You should speak to a Florida bankruptcy attorney today. At our Tampa law firm, we represent financially troubled clients in similar situations. Please call (813) 990-7944 now.