Press Release: $9 Million Dollar Business Fraud Verdict
Just Click-To-Call Richard at Korb Law Offices
Business Law Blog
- The Importance of Forum Selection and Choice of Law Clauses In Contracts
- Starting And Managing Your Business 101: Avoiding Legal Problems Through Proper Record Keeping And Organization
- Starting And Managing Your Business101:Financing The Company
- Starting and Managing Your Business 101: Protecting Your Company’s Intellectual Property
- Starting & Managing Your Business 101: Employee Rights
Real Estate Law Blog
- Comparing Loan Modification, Short Sale, and Foreclosure
- Understanding Judicial And Non-Judicial Foreclosure In California
- Facing Foreclosure In California? The Pros & Cons of Loan Modification, Short Sales and Foreclosure
- The Home Affordability and Stability Act And Home Foreclosure
- Successfully Defending A Homeowner Facing A Foreclosure Action In California
Bankruptcy Law Blog
- No Job? A Look At Unemployment Insurance
- Qualifying for Chapter 7 Bankruptcy in California: The Means Test
- Filing Bankruptcy In California: Whether To File Individually or Jointly
- Bankruptcy Options When Faced With Car Repossession: Chapter 7 vs. Chapter 13
- Car Repossession And Bankruptcy: Redemption And Reaffirmation
Family Law Blog
Reducing Car Payments through Car Redemptions in Contra Costa, Alameda County, Tri-Valley and the Bay Area
In today’s economic times, car purchases that once made sense no longer work. Current high car payments and long-term debt as unemployment rises and home prices fall–become an increasing problem. One solution is the legal procedure called car redemptions. If, for instance, you paid $25,000 for a car that is now valued at $13,000, we can work to have your car debt reduced to $13,000. The result may be, for instance, a payment change from $500 to $250 a month. 722 redemptions, also known as car redemptions, can greatly reduce monthly expenses for car owners.
The criteria for taking advantage of car redemption laws and other laws and acts designed to help you cope with financial challenges is complex. The best way to learn more about your options is by speaking to an experienced attorney.
in Contra Costa, Alameda County, Tri-Valley and the Bay Area
Although a lender has the legal right to repossess a car if the loan it secures is not paid, most lenders exercise this right only as a last resort. The repossession process often involves contracting a professional repossession agency. Even after the vehicle is repossessed, it must be cleaned and prepared, then sold at an auto auction.
The sales price of the vehicle is rarely sufficient to cover the outstanding debt, leaving the lender to pay the repossession, cleaning and auction fees from its own profit. For this reason, lenders are generally eager to work with borrowers. Borrowers who can no longer afford the financed vehicle but do not want to experience repossession may be able to simply sell the car themselves and use the funds from the sale to pay off the remaining loan balance (and have the title sent to the new owner). Many banks are also willing to work with borrowers to avoid the repossession process and will set up a payment plan to cover any unpaid balance after the vehicle is sold.
A borrower who is unable to reach a satisfactory arrangement with the lender but who does not want to lose the car may consider bankruptcy protection. When a borrower files bankruptcy, courts immediately issue a freeze (automatic stay) on collection activities, including repossession. In certain cases under Chapter 7, the court may still require the car to be forfeited. Under Chapter 13, however, the court may structure a repayment plan allowing the debtor to retain ownership of the vehicle.
