Tennessee Car Repossession: Avoid Getting Your Car Repossessed

TRI Writer • July 8, 2020

In many areas in the US, including Tennessee, owning a car is a necessity. You need a car to get to work, to get your kids to school, and get essential errands done so your family’s life can run smoothly. If you’ve fallen behind on your car payments and your lender is threatening to repossess your car, you may feel pretty desperate to avoid getting your car repossessed.

How Can You Prevent Repossession?

If you’re facing the threat of auto repossession or if your lender already took your car before you could stop it, you don’t have to accept the situation and move on without a vehicle. You can file bankruptcy to stop repossession of a car in Tennessee. If your car was recently repossessed in Tennessee, you might be able to get your car back by filing bankruptcy.

How Does Filing Bankruptcy Help Avoid Tennessee Car Repossession?

Whether your car was repossessed due to falling behind on a title loan or a conventional car loan, bankruptcy can help. In most situations, filing bankruptcy can protect your car from repossession, and may decrease your monthly payment amount. A lower payment may be all you need to get back on track. Bankruptcy will also address any other debt you currently owe and help you get a fresh financial start.

But Isn’t Filing Bankruptcy Stressful?

Some avoid filing bankruptcy because they fear it is too stressful or too difficult. However, the stress associated with overwhelming debt, and the constant worry of a pending vehicle repossession are far more stressful than the bankruptcy process. Depending on the type of bankruptcy you file, you may receive your discharge of debt within a matter of months. Immediately upon filing, all collection activities stop. Most bankruptcy filers agree that filing bankruptcy is far less stressful than attempting to put off creditors who are continually seeking payment for past due debts.

But Isn’t Bankruptcy Difficult?

Some avoid filing bankruptcy because they are under the impression that the bankruptcy process is complicated. However, working with an experienced bankruptcy attorney streamlines the process. With an experienced consumer bankruptcy specialist on your side, most discover that the bankruptcy process is not difficult. While bankruptcy law can be complicated, your bankruptcy attorney is experienced and knowledgeable in handling the details and the paperwork, so you simply have to provide all the information about your debts, your creditors, and your current financial situation. Bankruptcy law was actually created to protect consumers just like you from impossible financial conditions – the laws are literally in place to help you in your current situation.

If you are worried about your car getting repossessed, we can help. Most bankruptcy offices in the Chattanooga area don’t have a single Consumer Bankruptcy Specialist on staff. Our office is the only one in the Chattanooga area with two. Please get in touch. You are in good hands with Kenneth C. Rannick P.C.

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Subchapter 5 Bankruptcy: Unlocking New Possibilities for Tennessee Residents

January 30, 2024
Are you a Tennessee resident facing financial challenges and considering bankruptcy? If so, you may have heard about a relatively new option called Subchapter 5 bankruptcy. But what exactly is Subchapter 5 and how does it differ from traditional Chapter 11 bankruptcy? More importantly, what benefits does it offer to individuals and small businesses?  In this blog post, we will explore the world of Subchapter 5 bankruptcy and shed light on its advantages for Tennessee residents. Whether you're a struggling entrepreneur or an individual burdened by overwhelming debt, understanding the potential benefits of Subchapter 5 can help you make informed decisions about your financial future. What is Subchapter 5 Bankruptcy? Subchapter 5 is a relatively recent addition to the United States Bankruptcy Code, specifically designed to provide a streamlined and cost-effective bankruptcy process for small businesses and individuals. It was created as part of the Small Business Reorganization Act (SBRA) in 2019, with the aim of increasing accessibility to Chapter 11 bankruptcy relief. The Benefits of Subchapter 5 Bankruptcy Simplified Process: One of the key advantages of Subchapter 5 is its simplified and faster bankruptcy process. Unlike traditional Chapter 11 bankruptcy, which can be complex and costly, Subchapter 5 offers a more streamlined approach that is better suited for small businesses and individuals. Retention of Ownership: Under Subchapter 5, business owners have the opportunity to retain ownership and control of their company while developing a repayment plan. This allows for greater flexibility and the ability to restructure debts without losing ownership interests. Reduced Plan Requirements: Subchapter 5 eliminates certain stringent plan requirements that are typically associated with traditional Chapter 11 bankruptcy. This simplification of the plan process makes it more accessible to small businesses and individuals. Debt Repayment Plan: Subchapter 5 allows for the development of a debt repayment plan based on the individual's or small business's disposable income. This plan spans over three to five years, making it more manageable and achievable for debtors. Creditor-Friendly Approach: Subchapter 5 encourages creditor participation and collaboration, promoting consensual resolutions and a more amicable environment. This can lead to increased cooperation, reduced litigation costs, and ultimately, a more successful restructuring process. Subchapter 5 vs. Chapter 11 Bankruptcy: Understanding the Difference While both Subchapter 5 bankruptcy and traditional Chapter 11 bankruptcy share some similarities, there are significant differences between the two. The primary distinction lies in the complexity, cost, and requirements associated with each option. Subchapter 5 offers a more simplified and accessible bankruptcy process specifically tailored to the needs of small businesses and individuals, while Chapter 11 is better suited for larger businesses with more complex financial structures. If you're a Tennessee resident grappling with financial difficulties, Subchapter 5 bankruptcy may provide a viable solution. Its streamlined process, reduced plan requirements, and debtor-friendly approach make it an attractive option for small businesses and individuals seeking relief from overwhelming debt. Before making any decisions, it's essential to consult with a qualified bankruptcy attorney who can guide you through the process and help determine the best course of action for your specific situation. Remember, bankruptcy is not a one-size-fits-all solution, and the outcome will depend on various factors. However, understanding the potential benefits of Subchapter 5 bankruptcy can empower you to make informed decisions about your financial future. At Kenneth C. Rannick, P.C., we specialize in bankruptcy law and can provide the guidance and support you need during challenging times. Contact us today to schedule a consultation and explore your options for a fresh start. Take control of your financial future with Subchapter 5 bankruptcy. Let us help you navigate the path to a brighter tomorrow.

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