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  • Louisa P.starstarstarstarstar5.0
    Robert and the team at Stiberman Law are truly exceptional. I was faced with the daunting task of navigating bankruptcy, and from the moment I contacted them, I knew I was in good hands Read More
    May 21, 2024logo
  • Arlene S.starstarstarstarstar5.0
    Excellent Lawyer, friendly and on top of things and reliable and efficient. I had to go through bankruptcy twice and I trusted them every time. I had the best experience with Robert and Read More
    March 20, 2024logo
  • Gustavo S.starstarstarstarstar5.0
    I am very satisfied with the service that they offered us. They were very professional and kept us informed at all times. I was looking for a bankruptcy attorney nearby and fount Robert Read More
    March 19, 2024logo
  • Louisa P.starstarstarstarstar5.0
    Robert and the team at Stiberman Law are truly exceptional. I was faced with the daunting task of navigating bankruptcy, and from the moment I contacted them, I knew I was in good hands Read More
    May 21, 2024logo
  • Arlene S.starstarstarstarstar5.0
    Excellent Lawyer, friendly and on top of things and reliable and efficient. I had to go through bankruptcy twice and I trusted them every time. I had the best experience with Robert and Read More
    March 20, 2024logo
  • Gustavo S.starstarstarstarstar5.0
    I am very satisfied with the service that they offered us. They were very professional and kept us informed at all times. I was looking for a bankruptcy attorney nearby and fount Robert Read More
    March 19, 2024logo
  • Paul B.starstarstarstarstar5.0
    I would like to share the amazing experience I have had with this Law firm. I was on the verge of loosing my house because I had not paid my property taxes. I looked for a Bankruptcy at Read More
    July 10, 2023logo
  • S.M.starstarstarstarstar5.0
    When I say this office was absolutely the best, I am not kidding! They have been absolutely phenomenal. Robert has been the best bankruptcy attorney. The whole team has always kept Read More
    April 20, 2023logo
  • Paula D.starstarstarstarstar5.0
    I was referred by a friend to this bankruptcy attorney. Mr. Stiberman and his staff was very courteous, knowledgeable and very caring towards my concerns. I am pleased with the outcom Read More
    April 18, 2023logo
  • R.P.starstarstarstarstar5.0
    The process was relatively easy, I would recommend Stiberman Law to anyone who finds themselves in need of a bankruptcy attorney.
    February 24, 2023logo
  • Jose N.starstarstarstarstar5.0
    I have to say that I have had a great experience with Stiberman Law regarding a bankruptcy and they have been very informative and supportive. They have been very helpful and always ans Read More
    January 20, 2023logo
  • L.L.starstarstarstarstar5.0
    Excellent service. Great bankruptcy attorney and staff. Always informed me of what to expect. My Chapter 13 bankruptcy was smooth and the process was easy thanks to Robert and the Read More
    July 20, 2022logo
  • Sam Sstarstarstarstarstar5.0
    Twelve years ago I was in need of legal representation stemming from the housing meltdown if 2008. Robert Stiberman and his staff handled the matter with complete professionalism and sp Read More
    October 19, 2022logo
  • K.D.starstarstarstarstar5.0
    I was looking for a bankruptcy attorney in Miami, and I found Mr. Stiberman. He and his office were efficient, and they guided me through every step of the process. I am appreciative of Read More
    September 16, 2022logo
  • Carmen C.starstarstarstarstar5.0
    I am so grateful for Stiberman Law, P.A. In 2019 my husband and were faced with a very difficult decision file for Bankruptcy, unfortunately we weren’t able to pay for our credit Read More
    October 26, 2022logo
  • N.M.starstarstarstarstar5.0
    Excellent work from this bankruptcy law firm! I was drowning in debt with my license suspended from a lawsuit I had and thought I would have to spend the rest of my life paying back deb Read More
    August 17, 2022logo
  • R.Z.starstarstarstarstar5.0
    The experience with this office has been great. No problems at all they have kept me straight to doing the right thing and feeling a breeze of peace and being debt free with my bankruptcy.
    August 30, 2022logo
  • F.starstarstarstarstar5.0
    Very happy with Robert and his team. Thanks to them we were able to save our home. Very helpful and knowledgeable in bankruptcy. Best attorney.
    July 28, 2022logo
  • E.R.starstarstarstarstar5.0
    I had a great experience, I just want thank Stiberman law and his team for a great experience also Ana for the help and explaining my case. Appreciate, thank you
    July 25, 2022logo
  • A.B.starstarstarstarstar5.0
    Very good office with my bankruptcy. They have been amazing through this hard process. Very happy with Robert and his staff they are very nice and professional. Thank you stiberman!
    July 23, 2022logo
  • W.J.starstarstarstarstar5.0
    Amazing work by Robert. They are really good with what they do, very attentive and knowledgeable. Customer service and professionalism are top, the lawyer has been great this whole t Read More
    June 25, 2022logo

Voluntary Repossession of a Car in Florida: Should I Do It?

If you have fallen behind on your car payments and don’t see a way to catch up, you’re either waiting for the car to be repossessed or trying to consider your options to get out from under the debt. Rather than seeing your car getting towed, you can choose to give the car back to the lender voluntarily. Is this the best option or should you consider an alternative to voluntary repossession of your car? We’re exploring the issue to help you make an informed decision for your future. 

Understanding Car Repossession

First, it’s important to understand car repossession and how this can affect your future. When you miss several car payments, the lender can repossess the vehicle. The lender can then choose to sell the car or auction it off, and if the car sells for less than you owe, you are still legally responsible for the balance of the debt. On top of this, you are also responsible for the costs of repossession, including administrative and processing fees, towing costs, and vehicle storage fees. Once the vehicle is out of your possession, the leftover debt is an unsecured debt, so the lender can sue you for the balance, and they may even be able to garnish your wages to pay the remainder. 

The missed payments, repossession, and judgment of leftover debt are all separate negative comments on your credit report. All of these can make it nearly impossible to get a car in the future, rent an apartment, and even get a job if the employer runs a credit check. 

Should You Choose Voluntary Repossession of Your Car?

Instead of waiting to have your car repossessed, you can choose to surrender the car back to the dealership. Not only does this spare you from having your car towed unexpectedly while you’re at work or in the middle of the night, but it also saves you repossession and towing costs. Also, when you choose voluntary repossession, the lender may not report the repossession on your credit or classify the repossession so that it shows up in a less damaging way than a standard repo, though it’s important to verify this prior to surrendering your car. 

However, even when you surrender your car, you are still responsible for any leftover balance due after the lender sells or auctions the car. Like a traditional car repossession, if you are unable to pay, the lender can sue and your wages may be garnished to pay the debt. 

How Bankruptcy Can Assist You with Voluntary Repossession of Your Car

If you are behind on your car payment and unable to catch up in your current financial state, filing for bankruptcy may be the right option as it can provide relief from your debt. 

Chapter 7

When you file for Chapter 7 bankruptcy, you can surrender your car to the lender. Once this happens, the debt is unsecured, and the bankruptcy will discharge the debt, erasing it from your record and stopping any wage garnishment.

Chapter 13

With Chapter 13 bankruptcy, your debt is reorganized and restructured so you are making smaller payments on your debt over a period of three to five years. You may be able to keep your car under Chapter 13 by either: 

  • Having a lower interest rate and lower payment for the next three to five years. At the end of the time period, the debt is eliminated and you own the car in full.
  • Pay only the actual value of the car without the interest and fees to get a lower payment. Once you complete this repayment, the debt is discharged. 

Schedule a Free Consultation with a Bankruptcy Lawyer

Before you choose voluntary car repossession, schedule a free consultation with a bankruptcy lawyer at Stiberman Law. We can help you go over your finances and discuss your options so you know the best path forward out of debt. Call us today at (954) 922-2283 or fill out the form below to get started.

Written By:

Attorney Robert Stiberman

Robert is an experienced bankruptcy attorney adept at handling Chapter 7, 13, and 11 filings, with more than 15 years of experience in bankruptcy cases. Robert represents clients in both consumer and business bankruptcy ... Read More

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