My Vehicle is Being Repossessed, What Should I do?
If you have been struggling under the burden of debt, you may be worried about your car being repossessed. Or, perhaps you have watched in despair as a tow truck repossesses your car in New Jersey. After taking out a car loan, you may have become unable to pay your monthly payments. Perhaps you had a higher paying job when you took out the car loan, and then lost your job. Motor vehicle loans last for a period of many years.
Circumstances can change drastically in a matter of a few years, however, making it difficult to pay your minimum monthly payment. When a person defaults or fails to pay a car payment, the loan company can reclaim or repossess the motor vehicle in lieu of payment. What are your options after a car repossession? Is filing for bankruptcy in New Jersey a good option for you?
New Jersey Car Repossession Laws
Repossession is extremely stressful. New Jersey law regulates the process of repossession, and you do have rights during the repossession process. While the bank or car loan company can repossess your vehicle, it cannot damage your property or threaten you. The bank will notify you that you are in default soon after you miss a car payment. Legally, the bank has a right to repossess your property as soon as you miss a payment. However, the repossession process is expensive and time-consuming. They may delay the process to see if you can make your payments.
Once the bank notifies you of a repossession, attempting to stop the repossession process is illegal. After the bank repossesses your car, it can sell the car for the highest possible price in a private sale or at auction. Banks must notify you of the sale of your car at least 10 days beforehand. You will have the opportunity to pay your car loan balance in full before the sale. You will need to pay the balance and the costs associated with repossession to get your car back. When the bank sells the car for less than the balance you owe, you will need to pay the remaining balance.
Is Filing for Bankruptcy in New Jersey Right for You?
Many times, when the bank sells a repossessed car, the payment is less than the debtor owes. Many times, the bank will come after the default car owner for the difference between the loan amount and the amount at which the car sold. If you have been struggling with making car payments, you may not be able to pay off the remaining balance of your car loan as well as other bills like your rent or mortgage.
If you are struggling to pay more than your car loan, bankruptcy may be an effective option for you. By filing for bankruptcy, you will receive an automatic stay. The stay automatically stops all collection actions, including car repossession actions. If you need experienced legal help in dealing with your repossession, our New Jersey bankruptcy lawyers can help. Call 1-866-96-GMLAW and start your path to financial freedom.