Can Bankruptcy Get My Car Back From Repossession?

Type of bankruptcy:

• Chapter 7: This type eliminates specific debts. You might be able to redeem your car by paying its current market value in a lump sum. You can also reaffirm the loan, agreeing to keep making payments under the original terms. However, both options require you to prove you can afford these payments moving forward.
• Chapter 13: This type involves a court-approved repayment plan for various debts, including your car loan. If you can catch up on missed payments and include them in your plan, you might be able to keep your car. This often requires demonstrating stable income and the ability to afford the plan alongside your regular car payments.

Timing:

Time is crucial. Acting quickly after the repossession significantly increases your chances of recovering the car. In both Chapter 7 and Chapter 13, the lender might sell the car before your case concludes, making its return impossible.

Financial situation:

You must demonstrate the ability to make consistent payments going forward, whether through redemption, reaffirmation, or a Chapter 13 plan. Failure to do so might result in losing the car again.

Other factors:

Your state's specific bankruptcy laws and the lender's policies can also influence your options.

Consulting a bankruptcy attorney:

Considering the complexities involved, seeking professional advice is crucial. A bankruptcy attorney can assess your specific situation, explain the available options, and guide you through the process, maximizing your chances of getting your car back while navigating the legal aspects effectively.

Remember, this is just a general overview. Individual circumstances can vary, and legal advice is essential for making informed decisions regarding your specific situation.

If you, a friend or family member is having an issue with a vehicle repossession contact us as quick as you can! We are a click or phone call away, contact the law offices of John T. Orcutt for a free consultation on getting out of debt for good.