You may have your car repossessed or foreclosed on by a creditor if you are unable to keep up with the payments. As a result, the property will be sold by the bank, putting the amount of that sale against the value of the debt. If the debt isn’t covered by this sale, you will be responsible for the balance of the debt. This balance is known as a deficiency balance.
The repossession of your car or foreclosure of your home can be stopped in many cases by filing a chapter 13 bankruptcy. For more information about how bankruptcy works and can help call our experienced Plymouth Massachusetts bankruptcy lawyersat the Law Office of Brian R Lewis. 508-946-3323.
Deficiency Balances: How They Work
A deficiency balances can add addition hardship to your financial situation. It is important to understand the rules a bank or any creditor must follow. These rules include the following:
- The sale of the property needs to meet reasonable commercial standards
- You must be notified of potential liability before the sale
- If there is any error during the foreclosure, the sale may not move forward.
- Not all deficiency balances are legal
Remember a chapter 7 bankruptcy or chapter 13 bankruptcy will remove most deficiency balances and allow you to move forward debt free or filed before the foreclosure can stop it all together. Talk to a professional Plymouth MA bankruptcy law firm and get your questions answered.
Contact Us
For a free consultation regarding your options in moving forward with a bankruptcy case, contact Plymouth bankruptcy lawyer, Brian R Lewis at 508-946-3323 today.