Protection from Creditors

Ultimately, whatever actions you attempt may not be enough to keep your lenders from taking action against you. Their action could be repossession of your vehicle, depriving you of your one method of transportation to and from work.

It can get worse if your lender pursues the deficient balance that you still owe after they have taken your car. They might win a judgment against you in court. A judgment is a court order to repay the debt.

Depending on the laws of your state, a judgment could result in garnishment of wages, levies on your bank accounts or even liens against your home. You may be left with no option but to repay the loan in full, plus all fees and accrued interest.

A licensed attorney may be able to provide substantial protection from your creditors at a price. For example, if you are insolvent with many debts that you are unable to repay, an attorney may be able to win a stay from repossession as a part of a bankruptcy filing. This could allow you to still use the car temporarily until your affairs can be ruled on by the judge. In addition, it may be possible that you may retain the car throughout the bankruptcy process if your plan allows for it.

Bankruptcy is a complicated process and one that should be considered carefully. It is possible to file bankruptcy on your own. However, due to the complexities of bankruptcy, it is strongly recommended that you contact legal counsel first. An experienced bankruptcy attorney is aware of the restrictions, benefits and consequences associated with the different types of filing. They can also help you ensure that all of your eligible debt is discharged through bankruptcy. If you try to file on your own behalf, you may be at a serious disadvantage.

Choosing a bankruptcy attorney is not always an easy task. While referrals can be a good thing, there is no guarantee that the attorney is the best fit.

One recommendation is to go through the lawyer referral service provided by your state's bar association. That way you can at least know that your attorney is licensed and in good standing. A good attorney might be able to provide you with protection from your creditors when you are the most vulnerable.