A car title loan is supposed to be a short-term loan. But the steep interest rates make it almost impossible to pay off. The debt soon doubles or triples. Then the repo man comes to take your vehicle.
We Can Help! · 312-767-5136 · Free Bankruptcy Consultation
If you are in this situation, call the law firm of Robert J. Adams & Associates. We will help you file for bankruptcy protection to save your car and deal with your debt. Our Illinois bankruptcy lawyers have helped many clients in Chicago and Lake County escape from the heavy burden of car title loans.
A Short-Term Loan Becomes A Long-Term Nightmare
Car title lenders prey on desperate people with poor credit. They loan cash with your car as collateral. A typical car title loan (also called a title pawn) is for 15 to 30 days at an interest rate or 25 percent or more. If you can't pay off the loan on time, it can be renewed month to month. This adds up to a 300 percent annual interest rate, which they don't tell you in the fine print. A loan for $2,000 quickly becomes a debt of $4,000 or more, with no hope of paying it off.
Many lenders also require you to provide a key to your car for easy repossession if you stop making payments. If they don't get their money, they get your car.
Chapter 13 Bankruptcy For Car Title Loans
Our attorneys can take quick action to get you into a Chapter 13 bankruptcy. From the day that you file for bankruptcy, lenders can no longer harass you for payment or repossess your car. If your car has already been repossessed, it may be possible to get back.
In Chapter 13, you pay back part of your debts over time, based on your ability to pay. It gets creditors off your back and gives you financial breathing room. Just as importantly, it lets you keep your vehicle that you need for family and employment reasons. In fact, Chapter 13 can restructure your original car loan to reduce the payments, interest or duration.
Get A Free Consultation
If you are in over your head from car title loans, payday loans, signature loans or other debts, there is relief. We provide affordable terms for filing bankruptcy, including no money down for qualified earners.
Call Robert J. Adams & Associates at 312-767-5136 or contact us online to arrange a consultation at our offices in Chicago (West Loop) or Waukegan.