Avoid Repossession in Arizona

Don’t Suffer the Consequences | Bankruptcy Can Stop Repossession in Arizona

by Max Gunderson

Worried about repossession in Arizona?  In need of debt relief?  Do you have a vehicle or motorcycle that is soon going to be repossessed or has recently been taken back by a creditor?  If so, please read on and find out the easiest ways to avoid repossession in Arizona.

infographic: solutions to car repossessions in Arizona

Once your vehicle has been repossessed, the collateral (your vehicle) is taken to a storage lot or auction house, where it’s stored for a period of time. The repossessed collateral must be sold in a commercially reasonable manner. You will be given reasonable notice of the date, time, and place of the sale. If you do not redeem the collateral by paying the full amount of the debt, plus all expenses of the repossession, the collateral will be sold by auction. The proceeds from the auction will be used to adjust your the amount that you still owe on the vehicle.

Once My Repossessed Car Is Sold, Am I Clear?

Just because you no longer have your vehicle and it has been sold at an auction does not mean that you are out of the woods. You still owe the difference between what you owed on the loan, and what the collateral (your vehicle) was auctioned. Inevitably, your creditor will come after you for the unpaid balance as they will probably file a civil lawsuit against you and get a judgment against you for the unpaid balance. This unpaid balance is known as the deficiency on your loan. If you find yourself facing a judgment for a repossessed vehicle or if the court has found you to be responsible for a deficiency on your vehicle, you should seek the help of a qualified Arizona bankruptcy lawyer, Arizona debt relief specialist, or Arizona bankruptcy attorney and get help with your vehicle repossession. Find out how chapter 7 bankruptcy or chapter 13 bankruptcy may help you stop repossession and give you and your family the “fresh start” that you deserve.

Consequently, if you are in a bind and find yourself falling behind on your vehicle payments, you may want to contact your creditor and see if you are able to make arrangements with them regarding payments on your vehicle.  In Arizona, it’s easier to try to prevent vehicle repossession from taking place than to dispute it afterward. You should contact your Arizona creditor when you realize you will be late with a payment. There are many creditors that will work with you if they believe you will be able to pay soon or even if slightly late.  Another possibility is that sometimes you may be able to negotiate a delay in your payment or a revised schedule of payments. If you do happen to reach an agreement with your creditor to modify your original contract, make sure to get it in writing to avoid questions later.

It is also important to remember that it is possible that your creditor may refuse to accept late payments or make other changes in your contract and may demand that you return the vehicle. By voluntarily agreeing to a repossession, you may reduce your creditor or lessor’s expenses.  However, voluntarily agreeing to repossession still makes you responsible for paying if your vehicle ends up being repossessed.  Remember that even if you return the car voluntarily, you are responsible for paying any deficiency on your credit or lease contract.  Voluntarily returning your vehicle may still leave a black mark on your credit rating if the lessor enters the late payments and/or repossession on your credit report.

What’s the Solution to Repossession?

If you have questions about the implications of Filing Bankruptcy in Arizona and repossession of your vehicle please contact our experienced bankruptcy lawyers, debt relief specialists, and bankruptcy attorneys of The My AZ Lawyers  call (480) 263-1699 or (520) 306-8729 for a free initial bankruptcy consultation. Get answers! Ask the bankruptcy questions that you have and discuss your legal options in avoiding vehicle repossession in Arizona and filing chapter 13 bankruptcy or chapter 7 bankruptcy in Arizona.

Our low cost bankruptcy attorneys can advise you as to which debt relief options might be the best fit for you when struggling with repossession in Arizona.  With locations in Mesa, Phoenix, Chandler, Glendale, and Tucson we are an Arizona Debt Relief Agency and help people file for Bankruptcy under the Bankruptcy Code.  Don’t lose everything. Get a “Fresh Start” today.

If you are looking for more information about:  Repossession in Arizona, Debt Relief in Arizona, Chapter 13 Bankruptcy in Arizona, Chapter 7 Bankruptcy in Arizona, Arizona Bankruptcy Lawyers, Arizona Bankruptcy Attorneys, Repossession Deficiencies, Arizona Bankruptcy, Automatic Stay in Bankruptcy, or Affordable Bankruptcy Assistance.

Visit our bankruptcy information web site:  https://bankruptcy-az.com