It’s been a pretty steep fall for Amy, a Dallas teacher.  She bought her first new car in 2009, but she got sick the next year and now finds herself facing Chapter 7 bankruptcy.

Once the voluntary bankruptcy petition is filed, the moneylender (in this case, the auto finance company) is required to stop all communication with the debtor.  Sometimes, the moneylender may also stop sending monthly statements and stop ACH withdrawals for monthly payments.  Regardless of what the moneylender does or doesn’t do, keep making your monthly payments!  In fact, it’s best to make those payments with some sort of certified funds (cashier’s check or money order).

After the bankruptcy is filed, Amy basically has three options cheap generic strattera.

Reaffirmation.  A reaffirmation agreement is between the consumer and the moneylender, wherein the consumer simply agrees to keep making monthly payments.  Reaffirmation agreements may have serious consequences, so it’s important to speak with the attorneys at Henley and Henley before you sign anything.

Redemption.  Amy still owes the moneylender $10,000, although the car is only worth $5,000.  She might decide to redeem the collateral.  She would pay the moneylender $5,000 (the car’s present value), and the remainder of the debt would be eliminated.

Surrender.  If Amy cannot afford the monthly payments on her car, she may decide to let the moneylender repossess the car.

If you find yourself in this same situation, please call today for your free consultation.