Call Now!
Call Us 414-326-9231 608-260-7133 Text Us 414-326-4709

Defaulted payments: Bankruptcy can stop repossessions

The emotional impact of the repossession of a Wisconsin person's belongings, along with the fact that such actions are public record, can be severe. Furthermore, when defaulted payments lead to repossessions, the impact can be more significant than the hurting of a person's pride. One of the consequences of repossession is the substantial drop it will cause in a consumer's credit score.

If a person's belongings are repossessed, he or she will still not be off the hook. The debtor will still be responsible for the outstanding amount, which will be the difference between the amount the lender manages to recoup and the unpaid debt balance. If a consumer is unable to pay the balance, the lender may file a lawsuit for it. Also, the repossession will remain on the individual's credit record for seven years.

Consumers are often warned about companies promising to cancel repossessions from credit records. Be careful, as many times, these are scams that can rid a consumer of even more money. Repossession laws vary from state to state, and, for this reason, it may be wise to acquire the relative information related to state laws. A consultation with an experienced bankruptcy attorney can provide that information.

During such a consultation, a Wisconsin consumer can also discuss the available options to prevent repossession. Filing for bankruptcy provides protection against such action in that an automatic stay becomes effective upon the filing for personal bankruptcy. Although bankruptcy will also remain on an individual's credit record for many years, a Chapter 13 bankruptcy will provide the filer the opportunity to make up the defaulted payments along with future payments over an extended period, while keeping his or her property. A bankruptcy attorney can explain the requirements for the available chapters under the U.S. Bankruptcy Code.

Source:, "Repossession and its impact", Jeremy Marcus, Accessed on Feb. 13, 2016

No Comments

Leave a comment
Comment Information
Email Us For A Response

Free Case Evaluation

* indicates required field

Miller & Miller Law, LLC
  • VISA
  • Master Cards
  • Discover
Milwaukee Office map Madison Office map Kenosha Office map

633 W Wisconsin Ave, Suite 500
Milwaukee, WI 53203

Phone: 414-312-6581
Fax: 414-277-1303
Milwaukee Office

2810 Crossroads Drive
Suite 4001
Madison, WI 53718

Phone: 608-260-7133
Madison Office

6123 Green Bay Road
Suite 210
Kenosha, WI 53142

Phone: 262-326-1669
Kenosha Office

Appleton Office
4321 W. College Ave.
Suite 200
Appleton, WI 54914

Phone: 920-280-3838
Appleton Office

Brookfield Office
200 S. Executive Drive
Suite 101
Brookfield, WI 53005

Phone: 262-261-0665
Brookfield Office

Glendale Office
6333 N. Green Bay Avenue
Glendale, WI 53209

Phone: 414-973-8662
Glendale Office

Fax: 414-277-1303 - We also have offices in Appleton, Glendale and Brookfield to better serve you.