Stop Car Repossession

Millions of Americans depend on their car for their daily life. They use it to go back and forth to work, to drop off and pick up their kids from school, and for other necessities. Even so, most Americans have to take our car loans for such a large purchase. In doing so, they must enter into agreements that allow creditors to repossess their car if they miss payments.

If you have missed car payments, creditors with a lien on your vehicle can legally tow away your car in broad daylight.

Fortunately, you don’t have to helplessly face car repossession. There are solutions! Bankruptcy Laws offer you protection from repossession. If you live in Texas, give us a call for help!

Chapter 13 Bankruptcy immediately stops auto Repossessions.

One of the safest and most immediate ways to stop a vehicle’s repossession is to file a lawful Chapter 13 Bankruptcy.

Chapter 13 is powerful because its benefits go into effect immediately. Repossession must be called off once the case is filed, and the lender has no choice but to comply with the law. There are limited exceptions to this rule, but if you have not had a bankruptcy case pending within the past year and have adequate insurance coverage, it is safe to say that a Chapter 13 filing will stop repossession.

Stopping repossession if you can't bring your payments current

In a Chapter 13 bankruptcy, you don’t have to make up the payments you missed. It’s helpful not having to come up with all the money you are behind on in a lump sum. Your Chapter 13 Bankruptcy payments generally include your car payment. Therefore, if you stay current on your Chapter 13 payments, keep adequate insurance, and follow Chapter 13 bankruptcy rules, your car will remain protected.

Other options to stop car repossessions

The other options for stopping include:

1 – Bring the loan current.

The plus: the car loan is brought current without filing for bankruptcy.
The minus: it generally requires a lumpsum payment.

2- Make partial payments if the car creditor agrees

The plus: you make a lower payment than the entire delinquent amount.
The minus: the car creditor must agree to the arrangement.

3- Pay off the car loan with another loan.

The plus: the repossession stops, and you start anew with another creditor.
The minus: interest rates for the new loan may be considerably higher.

Can I get my car back once it has been repossessed?

Yes, if you live in Texas, but you only have ten days to redeem your car. If you file for bankruptcy or if you bring your payments current within that time period, you should be able to get your vehicle back. To avoid complications, you should act as fast as you can.