When a car is repossessed, financers require large down payments to release vehicles. There are late fees, tow fees and storage fees added to the balance. So, if you want your vehicle back, you will probably pay more than the payments you fell behind on.
Generally a person is given 21 days to retrieve a vehicle before it is auctioned. During this time you must figure out what you want to do with the car. Once the vehicle is sold, it is no longer your vehicle to try and redeem. Usually vehicles are sold for next to nothing so not only are you car-less but you probably owe a large balance on a car you do not have anymore.
You have a solution to the problem! File a bankruptcy with Peter Francis Geraci and Geraci Law. If you want to keep car, a Chapter 13 bankruptcy must be filed before the car is sold. Geraci Law attorneys can file in as little as one day. A Chapter 13 is a 3-5 year repayment plan consolidating debt based on your income and expenses.
If you do not want the vehicle, you will owe a deficiency after the car is sold. A Chapter 7 bankruptcy can eliminate your obligation to the balance with any other credit cards, medical or other debt. Filing either bankruptcy will stop creditors from calling and stop any lawsuits!
There seems to be countless Web sites, pamphlets and talking heads on television talking about foreclosure. But there is not much information about how to stop the process. Once the foreclosure judgment is entered, most banks want it all or nothing. I talk to countless people able to pay the majority of arrears and their mortgage company will not accept partial payment.
It’s very simple – if you can afford your house, a Chapter 13 can help you. A Chapter 13 bankruptcy will not modify or change your monthly mortgage payment. But, you can pay the mortgage arrears over a 3-5 year repayment plan. You will start paying the regular mortgage payment and another to the bankruptcy court to get current.
So you fall behind on your mortgage, file a Chapter 13 repayment plan and then there is a loss of income. Sometimes it seems easier to bury your head in the sand and ignore the problem. But this is why you hire Geraci Law! You hire Peter Francis Geraci and Geraci Law Attorneys because we are here to help you. Almost every problem has a solution.
A similar situation happened to an Illinois couple. The wife lost her job during the Chapter 13 plan causing a loss of household income. Regular monthly mortgage payments fell behind and the couple was facing a motion to modify the stay (meaning the house is taken out of bankruptcy protection). The wife returned to work but could not pay the full balance to vacate the motion. Instead of the mortgage company’s motion being granted, Geraci Law Attorney Ashley Chike was able to work out a six month payment plan for the arrears. She was able to keep the house in the bankruptcy and prevent a foreclosure.
If you have a vehicle payment that is too high, it may be that you “rolled over” the balance on a vehicle you traded in, paying that off with part of the new loan. That means you are “upside down” and owe more than the vehicle is worth. That means your payment may be more than you can afford. Geraci Law helps our clients by developing relationships with honest car dealers who can sell you a vehicle you can afford at a payment you can afford. Here is what Gino Amoroso of Motor World in Glen Ellyn, Illinois has to say about working with Geraci Law clients:
Hello Scott, Just want to say thank you & keep you informed on how things are going. Currently this month we have sold eight customers referred by Geraci Law Firm: all were completely satisfied. The buying experience here at Motor World is the fast approval process and polite professional sales reps that create the ultimate buying experience. As an example today we did a complete brake job (pads & rotors) on a car we sold two months ago that was never promised to the customer: its the extra mile we go to keep our customers happy. As a result of our work ethics we are on target to hit a hundred sales this month, We enjoy a great working relationship with you and your organization Scott! That’s it.
Gino Amoroso http://www.mwcars.com
Earlier this week, the Seattle City Council approved the largest increase in minimum wage. The minimum wage in Seattle is $15 per hour (minimum wage in Illinois is only $8.25 per hour). The Seattle city council took a step toward balancing income inequality.
If other cities would follow the example, many people would not need to rely on credit as an income supplement. Instead, a person can budget to live within their means. When you are only making $330 per week (before taxes), using credit cards or payday loans as a crutch seems like an easy solution.
The problem is paying minimums means you are paying interest. The debt is not getting paid off and the balance might be increasing. So you are stuck in a bad cycle where you are current with the minimums but using credit because your income is going to paying the minimums.
Break the cycle and consider bankruptcy! You can file a bankruptcy and eliminate the debt allowing you to budget even with minimum wage earnings. So when your state or city increases the minimum wage, you have more income to save instead of paying toward high interest debt.
At Geraci Law, at the end of every month each one of our 80 or so attorneys reports on something exceptional they did for a client. This helps to reinforce part of our Peter Francis Geraci mission statement: “We are here to help others”. We post these on our website, http://www.infotapes.com every month so that potential clients can be assured they are receiving the highest level of professional services from each and every Geraci Law attorney.
One of our lawyer was reluctant to contribute; she said “I do good things for our clients every day, it’s nothing special”. I said, “then just give me the MOST special good thing you did in a month.” So now she is our top contributor!
How much debt do I need to file a bankruptcy? It’s a common question. What seems like a small amount to one person can seem like millions to someone else. Generally speaking, the biggest qualification for a bankruptcy is debt you cannot pay. But how much is enough?
The best place to start is your credit report. You can pull a free credit report annually (www.annualcreditreport.com). Many people are surprised when debt and judgments show up from years ago.
It’s a common misconception that unpaid debt will just disappear. It is not magic – debt doesn’t just go away. Your creditors may write off the balance but the debt is still owed. Creditors just consider you to be a bad customer but are not collecting.
If total debt is approximately $10,000 or more, consider a bankruptcy. A Chapter 7 bankruptcy will eliminate any obligation to the balance and prevent creditors from calling you, suing you or trying to collect. If you have less debt but are behind on a car payment or a mortgage, a Chapter 13 bankruptcy can be an option. You can consolidate your bills into an interest free repayment plan and bring delinquent loan payments current.
If you are considering a bankruptcy, contact Geraci Law. We offer free phone and in-office bankruptcy consultations to figure out the best option for you. If we cannot help you, we’ll point you in the right direction.
If you think that all those collections, past due, late payment, and anything else you’ve stumbled on is good credit, you’re wrong! If you think that you’ll ever pay off a $10,000 repossession, better get 2 jobs.
If you think that your credit score is great now, don’t file bankruptcy, why should you? But if creditors are calling, lawsuits threatened, and you do file a bankruptcy, Chapter 7, what happens?
Your credit score improves after your discharge your debts!! how much? it can go from the 500’s to the 700’s. Why? You have no debt, except things like car and house you are current on! And you can start to save some money, build up emergency fund, open a bank account, and be a good credit risk.
Under Chapter 13, you can’t get more credit without court permission. But chapter 7 gives you a discharge of debt in 4 months. Geraci Law can then assist you in cleaning up your credit report, and improving your credit score. Ask us how.
Plenty of wall art!! Licenses, diplomas and certificates covering 20 feet of wall space, ran out of room!
I went down to Nashville recently for an intensive course in effective leadership using Dave Ramsey’s EntreLeadership principles. Dave Ramsey has devoted his career to Debtor Education the way I have to practicing bankruptcy law. Dave has quite a company, and his methods of operation are almost identical to Geraci Law. In fact, except for the obvious Christian background of Dave’s company, the guiding principles of Geraci Law are almost identical to Dave’s: honesty, integrity, and helping others come first. We even like the same Bible passages! And remember, Bankruptcy is a biblical law, Old Testament: Deutoronomy 15: 15 “At the end of every seven years you shall grant a release of debts. 2 And this is the form of the release: Every creditor who has lent anything to his neighbor shall release it; he shall not require it of his neighbor or his brother, because it is called the Lord’s release”.
Dave believes, as do I, that everything else follows if you do the right thing and help others. Dave Ramsey has a large meeting room where his 400 or so employees gather each week to share reports on the business operations. Geraci Law only has about 130 staff, but the Geraci Law teams also meet weekly, in person or electronically, and each team leader shares their reports. In that way, the organization is able to communicate and improve service to their clients. It was quite a thrill to meet Dave Ramsey in person, and we had a great time and learned a lot, although I think my Debtor Education Course at http://www.pfged.com is better than Dave’s!!
(his is pretty good, though, and his new book is great!)
We at Geraci Law strive to have “happy clients”. Why? Our clients are almost always under stress, and our mission is to take as much of that away for them as possible. Here is what one recent client took the time to say in a thank you card to me:
“I want to extend a warm thank you to you and all the lawyers at your firm. You have a wonderful group of lawyers and you have helped me get out of debt and start my life once again. I especially want to thank your lawyer at your Berwyn office because they personally helped with my case. I want to thank Frank Hernandez. He helped me understand the whole case, and always answered by questions. He is so generous he even shared his dinner with me once. I had never tried Italian Beef before then. I also want to thank Belfor. He always greeted me and welcomed me into the office. I have recommended your office to my friends, who also need help with their bills. Thank you Mr. Geraci for everything your firm has helped me with. The little things you do mean so very much. Thank you.