Austin, Texas (PressExposure) July 13, 2009 -- No lender, bank, or Auto Company can commence, or pursue any action or attempt to take money from the debtor who has successfully filled a bankruptcy. If an individual is not able to pay the monthly installments to the car company then the company is not authorized to reposes the car. In case the repossession is done before filing the case then with full insurance coverage of car a debtor can get his car back if it is not sold again.
According to the chapter 13, a person in arrears with the car company installments can file the case in which the payment is done by one of the three methods.
The things to understand by a person filling a petition might be difficult and here comes the need of Austin bankruptcy lawyer. They are well skilled to handle the situation as they have done this before on behalf of other clients.
The three methods stated by Austin bankruptcy attorney are- The first method: In this method the debtor needs to pay monthly installment of said amount to the trustee which includes total debt amount, fee till the filing date. These arrears are generally paid to the trustee till the life of bankruptcy and it is defined as 36 to 60 months. This monthly payment is more refereed to as plan payment. The first installment should be paid after the first month of filling the case. In addition to this, the monthly payment schedule should be followed by debtors at regular basis.
The second method: according to the second plan, a debtor needs to pay something more than the normal plan. This includes fee, total cost and extra interest. The monthly payment is same as that of first method and should be followed. However the amount that needs to be paid is quite less than the pre-bankruptcy payment. The reason is the number of months that are increased in this option.
The third method: Under this scenario a debtor needs to pay the replacement amount of the car. The debtor can pay this amount on the monthly basis throughout the life of bankruptcy plan. There is some more cost which is be added to the plan. The plan includes the replacement amount, fee and some interest rate. The trustee and the debtor are not required to pay direct finance to the car company.
A car finance repossession can be easily saved by filling a bankruptcy case by renting the services of Austin bankruptcy lawyer.
The famous Austin bankruptcy attorney, says âThe cases of bankruptcy are increasing day by day due to recession and some other factors. The debtors do file a case themselves but without sufficient experience they do not get satisfactory results. This has also increased the needs of bankruptcy lawyer in Austin.â
âChapter 7 for bankruptcy protection is not helpful in saving repossession of car. By filling the case under this chapter a car company cannot reposes the car from debtor. However, if the debtor is not able to pay the installments on time then the permission wall be granted to the company to reposes the car.â
The recession effect has left the people with no other option than filling a case and knocking an Austin bankruptcy attorney to get satisfactory results. The fee is not too high and a debtor can easily manage it through his bankruptcy budget.