Stop Repossession

Everybody gets into a tough financial situation at one time or another. But that doesn't mean your car should be taken away — hindering your ability to get to work and earn the income you need to make your payments.

If you are behind on your payments and your lender is threatening to repossess your vehicle, you can use a Chapter 13 bankruptcy to stop them and force them to accept your past-due payments in small increments over a lengthy period in order to get current. (You still have to make your regular payments.)

An Example

Let's say your car or truck payment is $500 a month. Because of a temporary lapse in income, you find yourself 75 days past due — knowing that once you pass 90 days, your vehicle will be repossessed. But you don't have the $1,650 needed to catch up on payments and late fees. What can you do?

While you might consider calling your lender for more time, we've found that in many cases lenders use that goodwill to gather information — like where you keep your car — to make it easier to repossess, sell it, and then sue you for a deficiency (the amount you owe beyond what they resell the car for at a wholesale auction). When that happens, you not only lose your transportation, you likely face a lawsuit and serious damage to your credit.

If you want to avoid this scenario, there is only one way that is legally guaranteed to prevent it — a Chapter 13 bankruptcy. Even if your car was repossessed just a day or two ago, a Chapter 13 will likely help and can force the lender to return your car.

Once you file a Chapter 13, you can force your lender to accept your past-due payments in small increments over a five-year period. In the example above, repaying the $1,650 over 60 months results in an affordable extra payment of $27.50 per month on top of your regular payment — and your lender cannot legally repossess your car or take any other action against you.

At the same time, you'll get the other benefits of a Chapter 13, including getting rid of most, if not all, of your credit card debt.

If you live in the Metro Detroit area and want to avoid having your vehicle repossessed, call us today at 248-417-9800 or contact us online to set up a free, no-obligation, confidential consultation. Our phone lines are available 24 hours a day.

Pursuant to 11 U.S.C. § 528 we are required to state that we are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.