My car was repossessed and now I’m being sued for the debt can filing for bankruptcy in Miami Florida help?

May 24th, 2013

Recently a client came to my office with a lawsuit by a junk debt buyer.  The lawsuit involved debt on a repossessed vehicle and the client had no idea why the debt was so high.  When your car gets repossessed in Florida the lender will typically sell the vehicle at an auction.  They will then subtract the amount they sold it for from the money you owe and typically a balance remains.  The lender will either sell that debt to a debt buyer or they will sue for that amount.  Here is an example:

You owe the lender $20,000 when your car gets repo’d.  It gets sold at an auction for $10,000.  Then lender will then subtract the $10,000 from the $20,000 leaving you with a deficiency balance of $10,000.  The lender will then sue you for the $10,000 or sell your debt to a debt buyer who will try to collect the money from you, either voluntarily or through a lawsuit.

The filing of a bankruptcy in Miami, Florida, whether it is a Chapter 7 or a Chapter 13 bankruptcy will help eliminate that debt.  By including the deficiency debt in your bankruptcy petition you will no longer be liable for the balance on the debt and the creditor will no longer be able to harass or sue you in an attempt to collect the monies owed.

If you are thinking of filing for bankruptcy in South Florida, including all areas of Broward, Miami-Dade, or Palm Beach counties and would like to speak to a bankruptcy attorney then please give Shmucher Law, PL a call at 954-309-5559 or 305-741-5553 to schedule a free consultation.