Are you delinquent on your car payments? If so, the bank or lender may have already started proceedings to repossess your car. Each lender is different — some may be lenient about several months of nonpayment while others may begin the repossession process after just one missed payment. Fortunately, options exist that allow you to stop repossession and keep your car.
When I petition the court for bankruptcy relief on your behalf, the court will issue an automatic stay. The automatic stay puts an immediate stop to creditors' attempts to collect your debts. This means your bank or lender will be forced to stop repossession proceedings.
How Can I Stop Car Repossession?
In a Chapter 7 bankruptcy, your unsecured debt is discharged. Your car loan is secured debt — it is tied to collateral. By eliminating unsecured debt — such as credit cards bills — you may be freed up to make car payments. If you can make the payments, you can keep your car.
In a Chapter 13 bankruptcy, the length of the loan will be considered. If the loan is older than 910 days, and if the current market value of the vehicle is less than what you owe on it, you may be able to pay the value of the car rather than the loan amount over the course of the three-to-five year repayment plan.
While it is best to seek help from a bankruptcy lawyer before your car has been repossessed, it may be possible to have your car returned to you. If you have questions about this, please call me.
Contact a San Mateo and Redwood City Repossession Defense Attorney
Filing for bankruptcy can be frightening if you feel as if there is no one standing by your side. For more than a decade, I have provided representation and guidance in Chapter 7 and Chapter 13 filings, helping people stop vehicle repossession. I offer a free 45-minute consultation. To schedule yours, call me locally at 650-295-0934 or toll free at 866-899-8561. You can also contact my California law firm online.