Repossession is a type of debt collection action that creditors or third party debt collection agencies may use to recover some of their money when consumers are unable to remain current on their loans, or when they default of their loans. Some of the most commonly repossessed items include furniture, boats, cars, and other personal property that was paid for using credit. Things you buy using a credit card cannot be repossessed.
When you are already having difficulties with finances, repossessions can add insult to injury. As a symptom of larger financial problems, repossessions can be addressed by exploring debt relief and bankruptcy options. In fact, bankruptcy can be a powerful tool for stopping repossession by providing immediate protection and long-term solutions.
No matter which Chapter of bankruptcy you file under, the court will issue what is referred to as an automatic stay. The automatic stay is a court order that immediately halts all collection actions against you, including repossession. The automatic stay provides you with immediate protection, and with this protection, you can focus on organizing your finances and preparing for your bankruptcy case.
The Larger Financial Picture
While bankruptcy can be a smart strategy for finding relief and immediate protection, it is capable of helping you achieve much more. Think of repossessions as a symptom of your larger problems with debt, which has likely affected you in other ways. Bankruptcy can allow you to address the larger picture so that you can obtain a better financial future and prevent these difficult experiences from happening again.
Repossessions happen all the time, and to good people. If you are facing repossession, remember that you are not alone, that you have options, and that the Long Island bankruptcy attorneys from Jacoby & Jacoby can help. If you would like more information about stopping repossession and your debt relief options, we encourage you to reach out to our firm.Contact us today to speak with a member of our legal team.