Credit Card Debt
Credit Card Debt
Massachusetts Bankruptcy Lawyers Anthony Bucacci and Robert Simonian (508)673-9500
Getting Rid of Credit Card Debt With Bankruptcy
With a few exceptions, your credit card debt will be discharged in bankruptcy.
Many people file for bankruptcy because they’ve racked up excessive credit card debt, often using the credit to pay for necessities, like car repairs or medical bills. Both Chapter 7 and Chapter 13 bankruptcy can wipe out credit card debt, with a few exceptions.
Credit Card Debt in Chapter 7 Bankruptcy
Chapter 7 bankruptcy will discharge (wipe out) most or all unsecured, nonpriority debt. Medical bills, personal loans, and most credit card debt are typical examples of unsecured, nonpriority debt you can wipe out in bankruptcy. Examples of nondischargeable priority debts that you’ll remain responsible for paying include child support and certain tax debts.
In return, you must give up your nonexempt property, or property that isn’t protected by a bankruptcy exemption. The Chapter 7 bankruptcy trustee will sell your nonexempt property and distribute the proceeds to your creditors.
Exceptions to Discharging Credit Card Debt in Bankruptcy
In a few cases, you won’t be able to wipe out your credit card debt by filing for Chapter 7.
You Can’t Get Rid of Credit Card Debt Incurred Due to Fraud
Sometimes the creditor can challenge the discharge of your credit card debt. If successful, the court will not discharge the debt, and you’ll remain responsible for paying for it after your case ends. Here are a few common situations:
- You made a false statement on your credit card application to deceive the creditor that was “material” to the credit card issuer’s decision to extend credit to you. For example, you grossly inflated your income.
- You charged more than $725 to any single creditor for luxury goods or services within 90 days of your bankruptcy filing. In this situation, the law presumes that your intent was fraudulent.
- You got a cash advance from a single creditor totaling more than $1,000 within 70 days of your bankruptcy filing.
The amounts are valid for three years as of April 1, 2019. (11 U.S.C. § 523(a)(2)(C)(i)(l).) Learn why it’s not a good idea to use credit cards before filing for bankruptcy and about other types of bankruptcy fraud.
You Can’t Keep the Property When the Credit Card Debt Is Secured
In rare situations, the credit card lender may take a security interest in some of your property in the credit card agreement. Jewelry, electronics, mattresses, furniture, and large appliances often are collateral securing the purchase—check your contract and receipt. If the debt isn’t unsecured, you’ll be able to wipe out the debt, but the creditor will be entitled to the property securing the obligation. Learn more about secured property.
Credit Card Debt in Chapter 13 Bankruptcy
In Chapter 13 bankruptcy, you repay your creditors in full or in part through a repayment plan that lasts three to five years. The plan usually provides for payment of only a portion of your unsecured, nonpriority debt, like credit card debt.
How much you’ll pay will depend on the amount of your disposable income and the value of your nonexempt property (you keep all of your property in Chapter 13, but you must pay for the nonexempt portion). You’ll pay the larger of the two amounts throughout your plan. Learn about calculating the repayment plan payment.
Most Chapter 13 filers pay only a small percentage of their credit card and other unsecured debts, and, at the end of the repayment period, the remaining credit card balance gets discharged.
Can I File Chapter 7 Bankruptcy on Credit Cards Only?
In Chapter 7, you must include all of your debt in your bankruptcy case. But, you can voluntarily repay creditors after the bankruptcy is over if you choose to do so. It would be very unusual to repay a credit card debt.
Can the Credit Card Companies Sue Me After I File for Bankruptcy?
No. Once you file for bankruptcy protection, bankruptcy’s automatic stay prohibits most creditors from continuing collection efforts against you. The stay extends to credit card companies and prohibits them from suing you, sending you collection letters, calling you, or engaging in other collection activities. Learn more about bankruptcy’s automatic stay.
Common Questions About Filing Bankruptcy
Common Questions About Filing Bankruptcy
Massachusetts Bankruptcy Lawyers Anthony Bucacci and Robert Simonian (508)673-9500
What Are The Top Ten Questions To Ask Your Bankruptcy Lawyer ?
If you are thinking about filing for bankruptcy, you will want to ask your bankruptcy lawyer a few questions. Before you make a final decision regarding your bankruptcy, it is important to get the answers you need. Asking a knowledgeable and informed bankruptcy attorney is a good place to start.
What type of case will I be able to file?
There are two main chapters of consumer cases, a Chapter 13 bankruptcy and a Chapter 7 bankruptcy. Both types of cases will reduce or eliminate debt, but there are some differences.
How is the chapter of the bankruptcy case I file determined?
There is a complex mathematical computation that must be performed prior to a case being filed by an experienced bankruptcy attorney, and the result of this calculation determines whether you file a Chapter 7 bankruptcy or a Chapter 13 bankruptcy.
What are the differences between bankruptcy chapters?
Once you know what chapter you are able to file, you will want to know how that type of case is different from the other.
Should I reaffirm a debt?
If you want to keep your house or your car, the lender will probably ask you to sign a reaffirmation agreement. These agreements are like new loans. You will still be required to make payments after your case is finished. It is very important that the consequences be explained to you for each individual case.
How long will my case take to be filed in court and when will my case be discharged?
Generally, once your chapter 7 case is filed the hearing will be scheduled approximately 4 weeks later and 60 days after the hearing you receive your discharge. From start to finish the whole process for a chapter 7 bankruptcy is approximately 90 days.
Can I file a case now if I have filed one in the past?
There are rules on how often you can file and what chapter you can file under, and if you have a previous case you need to know these rules.
What is the 341 hearing meeting of creditors?
This is the first time you will go to a hearing and in almost all cases is the only time as long as your attorney has prepared the case properly. We can put you at ease by letting you know exactly what will happen at this hearing.
How much does it cost to file a bankruptcy and do you have a payment plan?
Our costs are very competitive and considered low. We offer payment plans to those who need it.
What happens if my chapter 13 case gets dismissed?
If your chapter 13 bankruptcy gets dismissed it is important to call your bankruptcy lawyer as soon as possible to discuss your options. Delaying could limit your options.
Do I get to keep my property if I file bankruptcy, or do I have to return them to the lender?
In almost all cases all of your property and assets are protected and exempt.
We can provide you more details about bankruptcy so you feel comfortable with your choice to file a case.
For help getting out of debt, contact us today at 508-673-9500. We will prepare for what comes before and after we file your case.
Collection Agencies
Collection Agencies
Massachusetts Bankruptcy Lawyers Anthony Bucacci and Robert Simonian (508)673-9500
Can a debt collector try to collect on a debt that was discharged in bankruptcy?
Debt collectors cannot try to collect on debts that were discharged in bankruptcy. Also, if you file for bankruptcy, debt collectors are not allowed to continue collection activities while the bankruptcy case is pending in court.
If a debt collector calls and you have filed for bankruptcy, tell the debt collector. You should also be sure the debt is in your list of debts and creditors filed with the bankruptcy court. If you are represented by an attorney for your bankruptcy, you should let the debt collector know this. Then the debt collector must contact the attorney instead of you while the bankruptcy is pending. You should also let your attorney know that you have been contacted by a debt collector. Once the debt is discharged by the bankruptcy court, the discharge permanently bars the creditor or debt collector from collection of the debt. Filing for bankruptcy can have long-term consequences so consult a bankruptcy attorney to learn more.
It is important to recognize that lenders often have a right to repossess the collateral. For example, auto loan lenders generally have a right to repossess the vehicle after default. If so, then the lender may still have that right after the bankruptcy discharge, if that debt is unpaid. If you have a bankruptcy lawyer, you might want to get advice from your lawyer about repossession.
We have prepared sample letters that a consumer could use to respond to a debt collector who is trying to collect a debt that you no longer owe due to a bankruptcy discharge. Additionally, the sample letters may help you to get information, stop or limit any further communication, or protect some of your rights.
Car Loan Payments
Car Loan Payments
Massachusetts Bankruptcy Lawyers Anthony Bucacci and Robert Simonian (508)673-9500
Can Bankruptcy Eliminate a Car Loan Deficiency After Repossession?
If your car is repossessed, you could be responsible for paying back a deficiency. Learn how to get rid of a deficiency by filing for Chapter 7 or 13 bankruptcy.
When you can’t afford to make your car payment, the lender has the right to recover the vehicle, sell it at auction, and apply the sales proceeds to the loan. Sometimes the auction amount isn’t sufficient to cover the entire balance you owe, leaving a “deficiency.” In this article, you’ll learn:
- whether you’re responsible for paying a repossession deficiency balance
- the steps the lender must take to collect the deficiency balance, and
- how you can get rid of a car loan deficiency in bankruptcy.
Learn more about your car in bankruptcy or how to avoid repossession.
Car Loan Deficiencies After Repossession
When you take out a car loan, you’re liable for paying back the loan, but you also agree to give the lender a lien allowing the lender to repossess the vehicle if you stop making your payments. If you default on your car loan, your lender will repossess your car and sell it at a public auction to satisfy its loan (as well as any fees incurred during repossession).
Because cars tend to depreciate quickly, in many cases, the sale proceeds from the auction might not be enough to pay off the outstanding loan balance and fees. If that happens, the unpaid balance is called a deficiency.
Learn how to keep a car in Chapter 7 bankruptcy or how to get your car back after repossession using Chapter 13.
Car Lenders Can Collect a Deficiency After Repossession
In most states, your car lender can come after you to collect its deficiency balance. The lender is limited to asking you to pay the deficiency without first doing more. If, however, your lender sues you in court and obtains a deficiency judgment against you, the lender can start garnishing your wages or placing liens on your other assets.
Bankruptcy Can Eliminate a Deficiency After Repossession
If your lender is suing you for a deficiency balance, filing for bankruptcy relief can stop the lawsuit. A Chapter 7 or Chapter 13 bankruptcy discharge can eliminate your responsibility to pay back a car loan deficiency. When possible, it’s best to file for bankruptcy soon after receiving notice of the suit and before the time to respond elapses. Here’s how it works.
After filing, the automatic stay prevents your lender from moving forward with collection activities, including its deficiency lawsuit against you. However, if your lender has already obtained a judgment and placed a lien on other property (such as your house), you’ll need to file a bankruptcy motion to remove the lien.
Bankruptcy Lawyer
Bankruptcy Lawyer
BANKRUPTCY – UNDECIDED OR UNSURE WHAT TO DO?
Talk To Us About Your Options:
We always tell potential clients to talk to us first to see if bankruptcy is in their best interest. The consultation is always free. Talk with Attorney Robert Simonian or Attorney Anthony Bucacci in private and in total confidentiality to see if filing bankruptcy in Massachusetts is right for you.
We can almost always come up with a solution to your financial problem. We have filed over 10,000 cases in the past 26 years and there are very few scenarios that we have not seen. We are known for our hard work, diligence, creativity and problem solving abilities. Often we are the bankruptcy attorneys other attorneys come to with difficult cases. Call today to see what we can do for you and what options are available. Often people believe they are the only ones with financial problems and are embarrassed of their situation. This is simply not true and many famous people have had to file for bankruptcy to get a fresh start.
Why Call Bucacci & Simonian:
We are known as one of the best bankruptcy attorneys in Southeastern Massachusetts serving the Bristol County and Plymouth County areas. Please inquire with anyone as to our reputation. Reputation is everything and we are very proud of ours. We have received numerous awards from various agencies and courts including the Bankruptcy Court in Boston, Massachusetts.
Using our knowledge and skill we have had several clients complete their five year Chapter 13 bankruptcy plans where they own their home FREE & CLEAR OF MORTGAGES. We understand how important it is to save clients’ homes from foreclosure, keep their cars from being repossessed and stop creditors from suing them and attaching their wages or attempting to seize their assets. This can be stopped almost instantly and we make every effort to be very available to your clients and can accommodate emergency situations. One of our most famous cases involved saving a clients’s multi-family home. https://www.courtlistener.com/opinion/1863802/in-re-brizida/
What to Avoid:
Do not attempt to file for bankruptcy on your own. You can make your situation much, much worse. If the bankruptcy petition is not correct you could lose your home, your car or possessions or you could be asked to file a different kind of bankruptcy where you have to make monthly payments when it could have been avoided. If you are not properly represented a bankruptcy trustee may foreclose on your house, allow your car to be repossessed, seize a tax refund or other assets. You could file under the wrong chapter, apply the wrong exemptions, fail to file all of the necessary forms or not understand the significance of important forms.
Protect Yourself:
Call us today for a free and complete bankruptcy consultation. We can protect you from your creditors and protect your home, cars, jewelry and other assets. Creditors and collection lawyers have a job to do and it may seem that they are heartless and will take anything they can from you. They are represented and you should be too. Call us today. The Federal Bankruptcy Court indicated that seeking the advice of a qualified attorney is strongly recommended. https://www.uscourts.gov/services-forms/bankruptcy/filing-without-attorney
Bankruptcy Law Firm
Bankruptcy Law Firm
BANKRUPTCY – UNDECIDED OR UNSURE WHAT TO DO?
Talk To Us About Your Options:
We always tell potential clients to talk to us first to see if bankruptcy is in their best interest. The consultation is always free. Talk with Attorney Robert Simonian or Attorney Anthony Bucacci in private and in total confidentiality to see if filing bankruptcy in Massachusetts is right for you.
We can almost always come up with a solution to your financial problem. We have filed over 10,000 cases in the past 26 years and there are very few scenarios that we have not seen. We are known for our hard work, diligence, creativity and problem solving abilities. Often we are the bankruptcy attorneys other attorneys come to with difficult cases. Call today to see what we can do for you and what options are available. Often people believe they are the only ones with financial problems and are embarrassed of their situation. This is simply not true and many famous people have had to file for bankruptcy to get a fresh start.
Why Call Bucacci & Simonian:
We are known as one of the best bankruptcy attorneys in Southeastern Massachusetts serving the Bristol County and Plymouth County areas. Please inquire with anyone as to our reputation. Reputation is everything and we are very proud of ours. We have received numerous awards from various agencies and courts including the Bankruptcy Court in Boston, Massachusetts.
Using our knowledge and skill we have had several clients complete their five year Chapter 13 bankruptcy plans where they own their home FREE & CLEAR OF MORTGAGES. We understand how important it is to save clients’ homes from foreclosure, keep their cars from being repossessed and stop creditors from suing them and attaching their wages or attempting to seize their assets. This can be stopped almost instantly and we make every effort to be very available to your clients and can accommodate emergency situations. One of our most famous cases involved saving a clients’s multi-family home. https://www.courtlistener.com/opinion/1863802/in-re-brizida/
What to Avoid:
Do not attempt to file for bankruptcy on your own. You can make your situation much, much worse. If the bankruptcy petition is not correct you could lose your home, your car or possessions or you could be asked to file a different kind of bankruptcy where you have to make monthly payments when it could have been avoided. If you are not properly represented a bankruptcy trustee may foreclose on your house, allow your car to be repossessed, seize a tax refund or other assets. You could file under the wrong chapter, apply the wrong exemptions, fail to file all of the necessary forms or not understand the significance of important forms.
Protect Yourself:
Call us today for a free and complete bankruptcy consultation. We can protect you from your creditors and protect your home, cars, jewelry and other assets. Creditors and collection lawyers have a job to do and it may seem that they are heartless and will take anything they can from you. They are represented and you should be too. Call us today. The Federal Bankruptcy Court indicated that seeking the advice of a qualified attorney is strongly recommended. https://www.uscourts.gov/services-forms/bankruptcy/filing-without-attorney
Bankruptcy Attorney
Bankruptcy Attorney
BANKRUPTCY – UNDECIDED OR UNSURE WHAT TO DO?
Talk To Us About Your Options:
We always tell potential clients to talk to us first to see if bankruptcy is in their best interest. The consultation is always free. Talk with Attorney Robert Simonian or Attorney Anthony Bucacci in private and in total confidentiality to see if filing bankruptcy in Massachusetts is right for you.
We can almost always come up with a solution to your financial problem. We have filed over 10,000 cases in the past 26 years and there are very few scenarios that we have not seen. We are known for our hard work, diligence, creativity and problem solving abilities. Often we are the bankruptcy attorneys other attorneys come to with difficult cases. Call today to see what we can do for you and what options are available. Often people believe they are the only ones with financial problems and are embarrassed of their situation. This is simply not true and many famous people have had to file for bankruptcy to get a fresh start.
Why Call Bucacci & Simonian:
We are known as one of the best bankruptcy attorneys in Southeastern Massachusetts serving the Bristol County and Plymouth County areas. Please inquire with anyone as to our reputation. Reputation is everything and we are very proud of ours. We have received numerous awards from various agencies and courts including the Bankruptcy Court in Boston, Massachusetts.
Using our knowledge and skill we have had several clients complete their five year Chapter 13 bankruptcy plans where they own their home FREE & CLEAR OF MORTGAGES. We understand how important it is to save clients’ homes from foreclosure, keep their cars from being repossessed and stop creditors from suing them and attaching their wages or attempting to seize their assets. This can be stopped almost instantly and we make every effort to be very available to your clients and can accommodate emergency situations. One of our most famous cases involved saving a clients’s multi-family home. https://www.courtlistener.com/opinion/1863802/in-re-brizida/
What to Avoid:
Do not attempt to file for bankruptcy on your own. You can make your situation much, much worse. If the bankruptcy petition is not correct you could lose your home, your car or possessions or you could be asked to file a different kind of bankruptcy where you have to make monthly payments when it could have been avoided. If you are not properly represented a bankruptcy trustee may foreclose on your house, allow your car to be repossessed, seize a tax refund or other assets. You could file under the wrong chapter, apply the wrong exemptions, fail to file all of the necessary forms or not understand the significance of important forms.
Protect Yourself:
Call us today for a free and complete bankruptcy consultation. We can protect you from your creditors and protect your home, cars, jewelry and other assets. Creditors and collection lawyers have a job to do and it may seem that they are heartless and will take anything they can from you. They are represented and you should be too. Call us today. The Federal Bankruptcy Court indicated that seeking the advice of a qualified attorney is strongly recommended. https://www.uscourts.gov/services-forms/bankruptcy/filing-without-attorney
Considering Bankruptcy Undecided Or Unsure What To Do
Talk To Us About Your Options When Considering Bankruptcy :
Are You Considering Bankruptcy Undecided or Unsure What To Do ? We always tell potential clients to talk to us first to see if bankruptcy is in their best interest. The consultation is always free. Talk with Attorney Robert Simonian or Attorney Anthony Bucacci in private and in total confidentiality for expert bankruptcy advice and to see if filing bankruptcy in Massachusetts is the right decision for you.
We can almost always come up with a solution to your financial problem. We have filed over 10,000 cases in the past 26 years and there are very few scenarios that we have not seen. The law firm Bucacci & Simonian is well known for their hard work, diligence, creativity and problem solving abilities. The law firm Bucacci & Simonian are the bankruptcy attorneys other attorneys come to with difficult cases. Call today to see what we can do for you and what options are available. Many are embarrassed about their financial problems and the situation regarding bankruptcy. This is simply not true and many famous people have had to file for bankruptcy to get a fresh start.
Why Call Bucacci & Simonian When Considering Bankruptcy Filing :
We are known as one of the best bankruptcy attorneys in Southeastern Massachusetts serving the Bristol County and Plymouth County areas. Please inquire with anyone as to our reputation. Reputation is everything and we are very proud of ours. We have received numerous awards from various agencies and courts including the Bankruptcy Court in Boston, Massachusetts.
Using our knowledge and skill we have had several clients complete their five year Chapter 13 bankruptcy plans where they own their home FREE & CLEAR OF MORTGAGES. We understand how important it is to save clients’ homes from foreclosure, keep their cars from being repossessed and stop creditors from suing them and attaching their wages or attempting to seize their assets. This can be stopped almost instantly and we make every effort to be very available to your clients and can accommodate emergency situations. One of our important cases involved saving a client’s multi-family home.
What to Avoid When Filing Bankruptcy :
Do not attempt to file for bankruptcy on your own. You can make your situation much, much worse. If the bankruptcy petition is not correct you could lose your home, your car or possessions or you could be asked to file a different kind of bankruptcy where you have to make monthly payments when it could have been avoided. If you are not properly represented a bankruptcy trustee may foreclose on your house, allow your car to be repossessed, seize a tax refund or other assets. You could file under the wrong chapter, apply the wrong exemptions, fail to file all of the necessary forms or not understand the significance of important forms.
Protect Yourself:
Considering Bankruptcy Undecided or Unsure What To Do ? Call us today for a free and complete bankruptcy consultation. We can protect you from your creditors and protect your home, cars, jewelry and other assets. Creditors and collection lawyers have a job to do and it may seem that they are heartless and will take anything they can from you. They are represented and you should be too. Call us today. The Federal Bankruptcy Court suggests that seeking the advice of a qualified bankruptcy attorney is strongly recommended.
BANKRUPTCY – UNDECIDED OR UNSURE WHAT TO DO?
Talk To Us About Your Options:
We always tell potential clients to talk to us first to see if bankruptcy is in their best interest. The consultation is always free. Talk with Attorney Robert Simonian or Attorney Anthony Bucacci in private and in total confidentiality to see if filing bankruptcy in Massachusetts is right for you.
We can almost always come up with a solution to your financial problem. We have filed over 10,000 cases in the past 26 years and there are very few scenarios that we have not seen. We are known for our hard work, diligence, creativity and problem solving abilities. Often we are the bankruptcy attorneys other attorneys come to with difficult cases. Call today to see what we can do for you and what options are available. Often people believe they are the only ones with financial problems and are embarrassed of their situation. This is simply not true and many famous people have had to file for bankruptcy to get a fresh start.
Why Call Bucacci & Simonian:
We are known as one of the best bankruptcy attorneys in Southeastern Massachusetts serving the Bristol County and Plymouth County areas. Please inquire with anyone as to our reputation. Reputation is everything and we are very proud of ours. We have received numerous awards from various agencies and courts including the Bankruptcy Court in Boston, Massachusetts.
Using our knowledge and skill we have had several clients complete their five year Chapter 13 bankruptcy plans where they own their home FREE & CLEAR OF MORTGAGES. We understand how important it is to save clients’ homes from foreclosure, keep their cars from being repossessed and stop creditors from suing them and attaching their wages or attempting to seize their assets. This can be stopped almost instantly and we make every effort to be very available to your clients and can accommodate emergency situations. One of our most famous cases involved saving a clients’s multi-family home. https://www.courtlistener.com/opinion/1863802/in-re-brizida/
What to Avoid:
Do not attempt to file for bankruptcy on your own. You can make your situation much, much worse. If the bankruptcy petition is not correct you could lose your home, your car or possessions or you could be asked to file a different kind of bankruptcy where you have to make monthly payments when it could have been avoided. If you are not properly represented a bankruptcy trustee may foreclose on your house, allow your car to be repossessed, seize a tax refund or other assets. You could file under the wrong chapter, apply the wrong exemptions, fail to file all of the necessary forms or not understand the significance of important forms.
Protect Yourself:
Call us today for a free and complete bankruptcy consultation. We can protect you from your creditors and protect your home, cars, jewelry and other assets. Creditors and collection lawyers have a job to do and it may seem that they are heartless and will take anything they can from you. They are represented and you should be too. Call us today. The Federal Bankruptcy Court indicated that seeking the advice of a qualified attorney is strongly recommended. https://www.uscourts.gov/services-forms/bankruptcy/filing-without-attorney
Car Title Loan Debt Bankruptcy
A car title loan is when you borrow money and offer your car up as collateral, and if you default, the lender can repossess your car. Car title loans & bankruptcy can go hand in hand. Exactly how much you may borrow and how quickly you need to repay the loan depends on your loan contract and the value and equity in your car. The lender may be able to take your car and sell it, keeping the difference between what you owed on the loan and the sale price. If the vehicle sells for less than what is owed you can still be in debt to the lender. If that were to happen you could discharge the debt in bankruptcy whether it is chapter 7 bankruptcy or chapter 13 bankruptcy. What the lender is permitted to do is dependent on state law and some states don’t allow vehicle title loans at all.
Note that you will most likely need to pay back a lot more than what you borrow. Hi interest rates and the cost of borrowing the money, means these are usually very expensive loans. The Federal Trade Commission says lenders often charge a title loan APR of 300%. Some states cap APRs for vehicle title loans, but the Consumer Financial Protection Bureau extended its deadline for putting new protections into place for borrowers who take on vehicle title and other high-cost installment loans. It has proposed rolling back requirements for lenders to determine upfront if borrowers could afford to repay the loans. Often people in desperate situations will try to obtain such a loan before filing bankruptcy.
What is a car title? A car title is an official, state-issued document that says who owns the vehicle. It will list the owner’s name and the car’s year, make, model and the vehicle identification number or “VIN Number.” Every time the car has a new owner and every time the owner moves to a new state, the title loan will change. Vehicle title loan lenders will often require a “clear” title, meaning you own your car outright and free and clear of other liens or loans against the vehicle.
What if you don’t own your car outright and there is no title loan? It may be harder to get a vehicle title loan or you may not be able to borrow as much money as you may need, or you may not be able to get a car title loan at all if you already have a loan on your car, depending on your state’s laws. You technically don’t own the car, the lender does. Depending on your state’s law, you may not even have a title in-hand, the lender may have it. If you do have the title and still owe on your car, it will say there is a lien on your car. This makes in more difficult to obtain such a loan.
The Benefits of a Car Title Loan
Car title loans are loans of last resort. It’s possible that a bank or credit union will offer car title loans at lower rates than storefront lenders.
Easier to Qualify
Because the lender knows it has something of value to take (your car) if you don’t pay it back, it is likely to have more relaxed credit score and income requirements than those for other types of loans. However, your state might impose certain income or other requirements. Again, a title loan should be a last resort for an emergency situation. If you are considering such a loan you should consult with a bankruptcy attorney first to explore other options.
Greater Loan Amount
Depending on how much your car is worth, you may be able to borrow a greater amount than a payday loan, which is another type of installment loan that uses your paycheck as collateral instead of a car title. Most auto title loans are for 25% to 50% of the car’s value, usually between $100.00 and $5,500.00 though some lenders may offer as much as $10,000 or more.
• How do you know how much your car is worth? Lenders will use industry standards like NADA or Kelly Blue Book to look up how much your car is worth. Do not expect that they will use the high retail value but rather the wholesale or trade in value. They will usually offer you less than this amount so that if you don’t pay back the loan and they take your car, they can then sell it for a profit. You can use the same online industry guide for free to get an idea of the amount you could borrow.
The Drawbacks of a Car Title Loan
We can’t emphasize this enough that vehicle title loans are expensive, more expensive than nearly any other type of credit and potentially risky. If you live in Massachusetts and are considering such a loan it may be best to schedule a free consultation with a debt lawyer or bankruptcy attorney before you make a mistake.
A Cycle of Debt
Lenders for car title loans make more money if borrowers stay in debt. In addition to high APRs, title lenders often charge fees or costs. If you cannot repay the loan, a “rollover” loan would fold all of those costs into a new loan. What sounds like a plus really isn’t because the new loan would add more fees and interest, making it even more difficult to get out of debt. CFPB data suggest that’s exactly what happens as a significant number of vehicle title loan borrowers enter multiple rollover loans and the cycle of debt begins.
You Could Lose Your Car
Default on your car title loan and the lender could repossess and sell your car. To add insult to injury, you may even be charged a repossession fee and auction fees. Some lenders require borrowers to furnish them an extra set of keys or install a device that could impair your ability to start the engine if you do not make payments. These devices may be used for repossession or as a way to remind borrowers to pay their loans on time. When the CFPB studied vehicle title loan borrowers between 2010 and 2013, 1 in 5 or 20% had their vehicle seized or repossessed.
If you find yourself in a situation where you are in debt and desperate for money to keep up with your bills it may benefit you to speak with us. We are Massachusetts bankruptcy attorneys serving all of Bristol County Massachusetts and Plymouth County Massachusetts. Attorneys Anthony Bucacci and Robert Simonian are Massachusetts bankruptcy lawyers helping people file bankruptcy in all of Massachusetts and particularly Southeastern Massachusetts including Fall River, Seekonk, Swansea, Freetown, Westport, Somerset, New Bedford, Dartmouth, Assonet, Fairhaven, Assonet, Mattapoisett, Middleboro, Lakeville, Raynham, Attleboro. Call us today or visit our website today to schedule a free consultation.
BANKRUPTCY – UNDECIDED OR UNSURE WHAT TO DO?
Talk To Us About Your Options:
We always tell potential clients to talk to us first to see if bankruptcy is in their best interest. The consultation is always free. Talk with Attorney Robert Simonian or Attorney Anthony Bucacci in private and in total confidentiality to see if filing bankruptcy in Massachusetts is right for you.
We can almost always come up with a solution to your financial problem. We have filed over 10,000 cases in the past 26 years and there are very few scenarios that we have not seen. We are known for our hard work, diligence, creativity and problem solving abilities. Often we are the bankruptcy attorneys other attorneys come to with difficult cases. Call today to see what we can do for you and what options are available. Often people believe they are the only ones with financial problems and are embarrassed of their situation. This is simply not true and many famous people have had to file for bankruptcy to get a fresh start.
Why Call Bucacci & Simonian:
We are known as one of the best bankruptcy attorneys in Southeastern Massachusetts serving the Bristol County and Plymouth County areas. Please inquire with anyone as to our reputation. Reputation is everything and we are very proud of ours. We have received numerous awards from various agencies and courts including the Bankruptcy Court in Boston, Massachusetts.
Using our knowledge and skill we have had several clients complete their five year Chapter 13 bankruptcy plans where they own their home FREE & CLEAR OF MORTGAGES. We understand how important it is to save clients’ homes from foreclosure, keep their cars from being repossessed and stop creditors from suing them and attaching their wages or attempting to seize their assets. This can be stopped almost instantly and we make every effort to be very available to your clients and can accommodate emergency situations. One of our most famous cases involved saving a clients’s multi-family home. https://www.courtlistener.com/opinion/1863802/in-re-brizida/
What to Avoid:
Do not attempt to file for bankruptcy on your own. You can make your situation much, much worse. If the bankruptcy petition is not correct you could lose your home, your car or possessions or you could be asked to file a different kind of bankruptcy where you have to make monthly payments when it could have been avoided. If you are not properly represented a bankruptcy trustee may foreclose on your house, allow your car to be repossessed, seize a tax refund or other assets. You could file under the wrong chapter, apply the wrong exemptions, fail to file all of the necessary forms or not understand the significance of important forms.
Protect Yourself:
Call us today for a free and complete bankruptcy consultation. We can protect you from your creditors and protect your home, cars, jewelry and other assets. Creditors and collection lawyers have a job to do and it may seem that they are heartless and will take anything they can from you. They are represented and you should be too. Call us today. The Federal Bankruptcy Court indicated that seeking the advice of a qualified attorney is strongly recommended. https://www.uscourts.gov/services-forms/bankruptcy/filing-without-attorney
Bankruptcy Lawyers Trust Wills And Divorces
BANKRUPTCY COURT OPEN & WE ARE OPEN. FREE IN PERSON OFFICE CONSULTATION, TELEPHONE OR VIDEO CONSULTATIONS. Most People Are Afraid Of Bankruptcy. Hearing different information from friends and the internet? Considering “Debt Consolidation?” Call Us First For Real Answers To Your Financial Problems 508-673-9500
BANKRUPTCY – UNDECIDED OR UNSURE WHAT TO DO?
Talk To Us About Your Options:
We always tell potential clients to talk to us first to see if bankruptcy is in their best interest. The consultation is always free. Talk with Attorney Robert Simonian or Attorney Anthony Bucacci in private and in total confidentiality to see if filing bankruptcy in Massachusetts is right for you.
We can almost always come up with a solution to your financial problem. We have filed over 10,000 cases in the past 26 years and there are very few scenarios that we have not seen. We are known for our hard work, diligence, creativity and problem solving abilities. Often we are the bankruptcy attorneys other attorneys come to with difficult cases. Call today to see what we can do for you and what options are available. Often people believe they are the only ones with financial problems and are embarrassed of their situation. This is simply not true and many famous people have had to file for bankruptcy to get a fresh start.
Why Call Bucacci & Simonian:
We are known as one of the best bankruptcy attorneys in Southeastern Massachusetts serving the Bristol County and Plymouth County areas. Please inquire with anyone as to our reputation. Reputation is everything and we are very proud of ours. We have received numerous awards from various agencies and courts including the Bankruptcy Court in Boston, Massachusetts.
Using our knowledge and skill we have had several clients complete their five year Chapter 13 bankruptcy plans where they own their home FREE & CLEAR OF MORTGAGES. We understand how important it is to save clients’ homes from foreclosure, keep their cars from being repossessed and stop creditors from suing them and attaching their wages or attempting to seize their assets. This can be stopped almost instantly and we make every effort to be very available to your clients and can accommodate emergency situations. One of our most famous cases involved saving a clients’s multi-family home. https://www.courtlistener.com/opinion/1863802/in-re-brizida/
What to Avoid:
Do not attempt to file for bankruptcy on your own. You can make your situation much, much worse. If the bankruptcy petition is not correct you could lose your home, your car or possessions or you could be asked to file a different kind of bankruptcy where you have to make monthly payments when it could have been avoided. If you are not properly represented a bankruptcy trustee may foreclose on your house, allow your car to be repossessed, seize a tax refund or other assets. You could file under the wrong chapter, apply the wrong exemptions, fail to file all of the necessary forms or not understand the significance of important forms.
Protect Yourself:
Call us today for a free and complete bankruptcy consultation. We can protect you from your creditors and protect your home, cars, jewelry and other assets. Creditors and collection lawyers have a job to do and it may seem that they are heartless and will take anything they can from you. They are represented and you should be too. Call us today. The Federal Bankruptcy Court indicated that seeking the advice of a qualified attorney is strongly recommended. https://www.uscourts.gov/services-forms/bankruptcy/filing-without-attorney