Raleigh Bankruptcy Lawyer for Equipment and Vehicle Loan Defaults and Repossessions

If you’re at risk of a lender repossessing your vehicle or equipment after defaulting on a loan, contact Bradford Law Offices immediately. We can review your case and determine whether filing for bankruptcy can protect the property you use to operate your business.

Many companies depend on certain equipment and vehicles to provide services and products to customers. You can’t operate without them. Unfortunately, if you default on a loan, the lender could repossess these items and sell them to pay the debt you owe. This could leave you without the property you need to keep your business running as usual.

Although filing for bankruptcy seems scary, it might be your only option. Contact Bradford Law Offices for help.

The Raleigh business bankruptcy attorney of Bradford Law Offices understand the uphill battle you face. You don’t want to lose your business or operate without the necessary property while sorting out your debt. We can assist you with the legal process and determine the best methods of protecting your assets and business.

For a confidential consultation to learn more about what we can do for you, call us at (919) 758-8879 or reach out to us online.

Using Equipment and Vehicles Obtained from a Lender

Many business owners can’t afford to buy the necessary equipment to perform daily tasks. Sometimes, they rent equipment, such as office printers, machinery, and other property. Renting equipment means entering into a legal contract with a vendor. Depending on the terms of the agreement, businesses can use the equipment by making monthly payments. Alternatively, the business owner might take out a loan to purchase the equipment they can’t pay cash for.

The same is true for motor vehicles. Some companies need to lease or finance cars, trucks, and other modes of transportation to deliver products, meet clients for appointments, and complete other job-related responsibilities. Leasing or financing an automobile requires paying the lender on a monthly plan based on the terms of the contract.

As long as you make payments every month on time and in full, you can continue to use the vehicles and equipment that are under contract to you. However, if you default on the loan, the lender could pursue legal action and file a motion with the court to take back possession of the property. Avoiding repossession and disruption to your business might require filing for bankruptcy.

Bankruptcy Options After Defaulting on a Vehicle or Equipment Loan

North Carolina law allows lenders to start the process of repossession after only one missed payment. That means if you fall behind during the rental period, you risk losing the equipment or vehicle vital to your company’s success.

You could file for bankruptcy, allowing you to keep your property while working out a repayment plan and even preventing the lender from taking any collections actions against you. The available options depend on the type of bankruptcy you file for and whether you qualify to do so. Contact Bradford Law Offices for a consult with an experienced bankruptcy attorney for specific information about protecting your financed equipment and vehicle purchases.

How Bankruptcy Works in North Carolina

The type of bankruptcy you filed for will determine the steps you must take to initiate your bankruptcy. It can be a complicated process to take on alone. You should contact Bradford Law Offices for a Raleigh bankruptcy attorney to advise the best options and guide you through each step.

Before you can begin your case, you need to determine whether you qualify for bankruptcy. You have to meet specific conditions under each chapter before filing with the court.

  • You can file your bankruptcy petition with the appropriate court to begin the process. The court might order an automatic stay to protect you from legal action by the lender while you’re handling your case.
  • You must outline your assets, liabilities, income, and other documentation showing your financial standing.
  • If you file for Chapter 13 bankruptcy, you will need to file a repayment plan for the court to approve. A reorganization plan is necessary when filing for Chapter 11 bankruptcy.
  • If you decide to pursue a Chapter 7 case, the court will appoint a trustee to liquidate your assets. During Chapter 13 and 11 bankruptcies, the court and lender will review your repayment or reorganization plan.

Contact Us

Bradford Law Offices knows how overwhelming it can be when you decide to file for bankruptcy. You might worry about ceasing operations or losing your business entirely. However, this could be the most effective option to keep your equipment or vehicle while paying off your debt.

We have represented business owners in Raleigh since 1996. We bring our experience, knowledge, and resources to every case to meet our client’s needs. When you hire us, you can count on our legal team to protect your rights and try to reach the best possible outcome for your case.

If you default on a loan and risk repossession of your commercial equipment or vehicle, call Bradford Law Offices at (919) 758-8879 for your confidential consultation. Let a trusted and experienced Raleigh bankruptcy lawyer help you out of the hole you’re in and secure your company’s future.

Written By: Danny Bradford Last Updated: July 19, 2022