Jump to Navigation

Understanding bankruptcy and vehicle repossession

When you fall behind on your car payments, the lender may be entitled to repossess your vehicle. At the Ammerman & Goldberg “Bankruptcy” Law Office, we know how vital your vehicle can be, transporting you to work and other important commitments. Fortunately, you might have options to stop that repossession, including bankruptcy.

There are two typical situations in which bankruptcy will affect a repossession. In the first, you have simply defaulted on your payments and your car has not yet been seized. Filing for a Chapter 7 or Chapter 13 bankruptcy will put an automatic stay on all your debts, including your vehicle. In this case, repossession is illegal. Further, if you file for Chapter 13 and develop a repayment plan that addresses your back payments, the creditor cannot repossess your car once the filing is complete as long as you make your payments on time.

In the second scenario, you have filed for bankruptcy after your car was repossessed. In some situations, if the car was seized shortly before the filing, you may be able to get it back. However, as the Federal Trade Commission notes, it is easier to stop a vehicle repossession than try to get your car back afterward.

The FTC encourages consumers to try to work with creditors at the first sign of trouble. If your financial situation is dire, you should speak with a professional as soon as possible to determine the best course of action. For more information on this topic, please visit our page regarding the benefits of filing for bankruptcy.

No Comments

Leave a comment
Comment Information
Start Right Now

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close
Visit Our Bankruptcy Law Website Subscribe to This Blog's Feed
Office Locations

1115 Massachusetts Ave NW,
Washington, DC 20005
Phone: 202-559-1428

10512 Pohick Court,
Fairfax Station, VA 22039
Phone: 703-550-7030

6926 Seven Locks Road,
Cabin John, MD 20818
Phone: 301-890-4500

Toll-Free: 877-441-4076
Fax: 202-638-5858

Twitter link