Will Bankruptcy Stop Car Repossession?

The Fear Of Losing Your Car To Overwhelming Debt

To a lot of people, their vehicle is one of their most important possessions because it not only helps them go places, but it also helps them maintain employment as well. For people facing insurmountable debt, being able to keep their vehicle becomes a real worry, especially when a creditor threatens repossession.

At Schwartz Bankruptcy Law Center, we understand the immense worry and stress that is felt by those facing a possible car repossession. For more than over 38 years, attorney Richard A. Schwartz has been helping individuals fight the seemingly uphill battle to retain the rights to their car, maintain employment and recover financially from their debt obligation. If you’re facing the same situation, our firm can help.

Your Options For Keeping Your Car

Just because you’re facing considerable debt and the possibility of filing for bankruptcy does not mean you have to lose all of your possessions to creditors. Many of your possessions, including your vehicle, will be considered exempt in a bankruptcy filing. Whether your vehicle is considered exempt or not depends on your specific situation:

• If you are behind in payments, or if you have a high interest rate and/or high payments, consider filing for Chapter 13 bankruptcy. Because this form of bankruptcy allows for repayment of debts over time, you may be able to keep your car instead of having it repossessed. You may also be able to lower the payments and the interest rate. Unlike Chapter 7, which requires you to be current in order to keep your vehicle, when you file Chapter 13 you do not need to be current with your car payments at the time you file in order to keep the property.
• If you are current on your payments, you should be able to keep your vehicle if you file Chapter 7, so long as the equity in the vehicle does not exceed the amount that is considered exempt. Chapter 7 will eliminate other debt, such as credit cards and medical bills, freeing up funds to make your car payments.

Getting Your Car Back After Repossession

If you file for Chapter 13 bankruptcy and your car has already been repossessed, you may be able to get it back as long as it has not already been sold prior to your filing. You must act quickly because once it is auctioned off, you may not get it back.

Trusted Guidance Through A Difficult Time

When you contact our firm, you will be scheduled for a consultation with one of our skilled and experienced bankruptcy lawyers. We will give you the time you need to fully explain your financial situation and then discuss debt relief options that give you peace of mind and help you keep your vehicle.