Having your vehicle repossessed due to missed payments or defaulting on
an auto loan can really throw a wrench in the gears of your life. As your
mobility plays a large part of your overall freedom, losing your primary
method of transportation due to financial hardship can be devastating.
Unfortunately, most people who have their vehicles repossessed do not
have the necessary funds to redeem their car, buy it back at auction,
or reinstate their auto loan, leaving them with seemingly no remedy for
their situation. Fortunately, you may be able to get your repo’ed
car back by filing for
Chapter 13 bankruptcy.
Chapter 13 bankruptcy is a reorganization of your assets and debts that
requires you to make monthly payments towards your debts over a period
of 3-5 years, with any remaining non-secured debts being discharged upon
completion. When you file for bankruptcy, a court injunction known as
an “automatic stay” is issued that protects you against any
and all creditor communications and collection efforts – including
vehicle repossessions. If you file for bankruptcy prior to the auction or resale of your vehicle,
this automatic stay will prevent the creditor who repossessed your vehicle
from taking any further actions to collect on the debt without first obtaining
In order to recover your vehicle, you must:
- File a Chapter 13 repayment plan that shows that you can immediately resume
making monthly car payments and will bring your payments current through the plan.
- Show the bankruptcy court that your repossessed vehicle is a necessity
and that you can afford your monthly payments through documentation of
In most cases, a lender will willingly release your vehicle back to you
upon receiving notice of your bankruptcy filing and Chapter 13 repayment
plan. If they refuse, the courts should order your lender to return your
vehicle as long as you have fulfilled the above requirements.
In addition to helping your recover your car, Chapter 13 bankruptcy may
also be useful as a means of lowering your monthly car payments. Depending
on the value of your vehicle, your interest rate, the remaining balance
on your loan, and the length of time that you have owned the vehicle,
your Chapter 13 filing may allow you to either reduce your interest rate
or lower the balance of your loan to match your vehicle’s actual value.
Recover Your Vehicle Today
If you have had your vehicle repossessed or are in danger of repossession
due to financial distress, contact Albaugh Law Firm today. Our knowledgeable
St. Augustine and Jacksonville bankruptcy attorneys can help determine
if Chapter 13 is right for you and guide you step-by-step towards a debt-free future.
no-cost case review or
get in touch with us online today to review your options.