Repo Debt Reduction

Franklin Debt Relief specializes in reducing the amount that consumers owe from repossessions. By negotiating with your creditors, FDR can lower the amount you owe from a repo by 40 to 60 percent and put you on the road to having the debt satisfied on your credit report. Clients of FDR's "New Deal" debt negotiation program also enjoy the benefits of one low monthly payment, which can include any other unsecured debt like credit cards, medical bills, or collections accounts.

What are my options?

1) Bankruptcy - In a Chapter 7 bankruptcy, you ask the court to erase your debts completely. In exchange you must turn over all your non-exempt property (or its equivalent in cash) to a court-appointed trustee, who in turn sells your property to pay back your creditors. Chapter 7 bankruptcy stays on your credit for up to 10 years and legal records for 20 years. Because of the credit implications, most consumers prefer to use bankruptcy as a last resort. Chapter 13 bankruptcy affects your credit for 7 years, but in a Chapter 13, you're forced to turn over all your disposable income to a court-appointed trustee for 3 to 5 years.

2) Debt settlement - Debt settlement, also known as debt negotiation or debt reduction, is the method used by Franklin Debt Relief to resolve your debt for less than you owe. Assuming you complete the program                                                    and your debts are all settled, debt settlement may be the fastest and most cost effective debt consolidation option for repossessions, credit card debt, collection accounts, and medical bills. More importantly, once the repossession balance is settled, the account will be reported as “settled” or "settled for less than what’s owed" on your credit report, showing that you resolved the balance.

Repossession Glossary

Deficiency balance - The difference between what is owed on the property's loan balance and what it is auctioned for after repossession. For example, let's say you owed $3000 on your vehicle, it was repossessed, and auctioned for $1000. The deficiency balance is $2000---the difference between what is owed ($3000) and what is was auctioned for ($1000).

Voluntary repossession - Turning in the property on your own accord instead of having it repossessed against your own will. Voluntary repossessions do not clear away the debt that is owed and it still affects your credit negatively. However, it is generally advised since it is still more favorable than an involuntary repossession on your credit, and there are no repossession fees associated with doing this.

Involuntary repossession - Having your property repossessed against your will. In this scenario, a "repo man" takes away your property without your authorization.

Repo - Short for repossession. Example: "I lost my car. Now I have a vehicle repo on my credit."

Do you need debt help? Call Franklin Debt Relief today: (877) 274-1260.