Can a Chapter 13 Bankruptcy get my repossessed (repoed) car back?
If the company (or car lot) financing your car has repossessed it, we may be able to help you get it back.
If you wake up in the morning, your car is gone and you are behind on your car payments, there is a good chance your car has been repossessed. After a car repo, you need to act fast. We have calls all the time from people wanting to get their repossessed car back, but they have waited too long.
This information applies to cars that are financed (not ones that are leased). Recently, many companies (and car lots) who sell cars are going to leasing cars, rather than financing, in order to try and prevent you from getting your car back after it has been repossessed. When you finance a car, the title to the car is put in your name, with the finance company being named as a lien holder. When you lease a car, the title remains in the name of the leasing company making it easier for them to keep the car. In most instances, when you are financing a car and file a bankruptcy before the car is auctioned off, filing the bankruptcy will likely keep them from selling the car and you are more likely to get the car back.
How long do I have to get my repossessed (repoed) car back?
The company (or car lot) who is financing your car is required to mail you a “10 day letter” notifying you of your right to redeem your car by paying off the debt due on your car plus various other charges. After this “10 day” period, the company (or car lot) who is financing your car has the right to sell your car at a public or private sale. After the sale, you are probably out of luck in getting your car back. Often the sale of your car is for less than the amount you owe on the car. In that situation, the financing company (or car lot) can and will likely sue you for the difference. For example, if you owe $15,000.00 on the car and they sell it for $5,000.00, they will likely sue you for $5,000.00 plus other charges and costs. This is an important reason to you get your car back before it is sold.
How to get a repossessed (repoed) car back.
Once your Chapter 13 bankruptcy petition has been filed, Arthur Ray Law Offices will notify the finance company (or car lot) and request they return your car to you. After notification, most finance companies (or car lots) will quickly return the car to you. If the finance company is not willing to return your car, we will file a proceeding in the Bankruptcy Court to have the finance company (or car lot) ordered to return your car to you.
What happens when I put my repossessed (repoed) car under bankruptcy?
You can likely lower your monthly car payment to the finance company (or car lot) after filing a Chapter 13 bankruptcy. Usually, the interest rate being charged can be reduced, often substantially reduced, thus lowering your payment. In addition, if you have less than 60 months remaining to pay off your car, your loan payments can be lowered by spreading the remaining loan payments out over the 60 month length of your Chapter 13 bankruptcy plan. Also, in many cases, if the value of the car is less than the amount you owe on the car, the secured portion (the amount you pay interest on) of the car can be put in at value, rather than the total amount of the claim. This may further reduce your car payment. Sometimes, your total Chapter 13 bankruptcy plan payment, including paying off your unsecured debt, will be less than your present car payment.
Can filing a bankruptcy stop my car from being repossessed (repoed)?
If you are having a hard time making your car payments, we can probably lower your car payments in a Chapter 13 bankruptcy. Act now and prevent your car from being repossessed. Sometimes it may take weeks to get your car back after it has been repossessed. If you are leasing a car, you may not be able to get it back.
Can my car be repossessed (repoed) if it is under a bankruptcy?
No, it can not be taken if it’s under a Chapter 13 bankruptcy without an order of the bankruptcy court. Normally such an order would not be granted if you are current on your Chapter 13 bankruptcy payments.
At Arthur Ray Law Offices, we will prepare your Chapter 13 bankruptcy petition for free. This will help you see the benefit of filing a bankruptcy before you decide to file it. If you decide not to file, you will owe us nothing. Under a Chapter 13 bankruptcy payment plan, you may be able to eliminate up to 90% of your unsecured debt, such as credit card debt and medical bills.
The above is only a simplification of the factors that go into choosing whether a Chapter 13 bankruptcy is the best option for you and/or your spouse. Do not act on anything you read on this site without hiring an attorney. This is why we offer, for free, to prepare a bankruptcy petition for you to see what works best in your personal financial situation. We provide representation for individuals who live in Lauderdale, Tipton, Fayette and Shelby County, Tennessee, who qualify to file bankruptcy in the Bankruptcy Court for the Western District of Tennessee located in Memphis, Tennessee.
Note: This information is subject to qualifying under the Federal Bankruptcy law and to the operation of said law.