Bankruptcy Solutions For Car Repossession

When you fall behind on vehicle payments, the lender can repossess the vehicle. To recoup any losses once the car is back in its possession, the lender will typically sell the vehicle at auction. If the lender cannot recoup the full remaining balance from the auction proceeds, it may go after the borrower to collect the deficiency balance. Whether the bank repossessed your car and you want to get it back or the bank is threatening to repossess your car, Bryan P. Keenan & Associates, P.C., can help.

Preventing Or Delaying Repossession With An Automatic Stay

After your lawyer files for bankruptcy, the bankruptcy court issues an automatic stay that prevents creditors from attempting to collect debt, including repossession measures. While the automatic stay prohibits collection efforts, the lender can file a motion to lift the stay, which, if granted, allows the lender to proceed with car repossession.

Getting A Vehicle Back After Repossession

If the lender repossessed the car before you claimed bankruptcy, you have a limited window to get it back before the lender sells it at auction. However, both Chapter 7 and Chapter 13 bankruptcy offer possible solutions to repossession.

Under a Chapter 13 repayment plan, you may be able to keep the car by repaying any arrears and continuing to make payments. If you owe more than the car is worth, you may be able to get the loan payment reduced as part of your Chapter 13 repayment plan.

Through Chapter 7 bankruptcy, you can negotiate with the lender to reaffirm the loan, possibly with a lower payment, interest rate or balance amount. You may also buy back the car for the retail value rather than the loan balance. If you cannot afford to keep the vehicle or do not want it back, Chapter 7 bankruptcy can discharge you from the loan debt.

Learn More About Repossession Options

Discuss your repayment and repossession prevention options with our experienced bankruptcy attorney during a free consultation. To arrange yours, please send us an email or call 412-923-4941. Serving Pittsburgh and the surrounding areas.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.