I am facing forclosure on my car, What is the best way to handle this situation?

Good morning:

It sounds like you are at risk of losing your car to repossession. If you are behind on your car payments, the creditor has the right to take the car from you.

Of course, you can make payment arrangements with the creditor to catch-up on your payments. Proceed with caution. The creditor may promise to take your payments and not repossess your car, but they do not always abide by their promises.

If you know you cannot afford to keep the car because your financial circumstances have changed, you may consider surrendering the car to the creditor. If surrender the car, make sure you get a receipt documenting the date and time you surrendered the car to avoid any future exposure to liability for damage to the car when you no longer had control. Also remember, you may be liable for the deficiency of the car loan, which is the difference between the outstanding loan balance and the amount the creditor receives when sellling the car.

If you file for bankruptcy protection, the creditor would be prohibited from repossessing the car while the "Automatic Stay" is in effect.

If you are considering filing for bankruptcy protection because of the issue with your car, and/or other debt issues, call me and I'd be happy to set-up a free consultation with you. (404) 680-7010.

**My response to your post on avvo.com was based on the facts you posed, and did not create an attorney-client relationship.

Angel M. Van Wieren
www.vanwierenlaw.com
vanwierenlaw.blogspot.com