Repossession

If you have fallen behind on your car payments or if you have defaulted on your car lease, then the creditor could repossess the vehicle.

Filing for Bankruptcy can stop the impending repossession because a Court order goes into effect called the “Automatic Stay,” which prohibits most creditors from taking or continuing actions and attempts to collect a debt.

If your vehicle has already been repossessed but has not been sold at auction yet, then we might be able to help you get it back by filing for Bankruptcy now.

A benefit of filing a Chapter 13 is that it provides you an opportunity to keep your car and catch up on overdue payments for secured debts (such as your car payments).

An additional benefit of filing a Chapter 13 is that if you are still making payments on a vehicle and you had the vehicle for at least 2.5 years, then it is possible to lower the interest rate and do a “cramdown.” In other words, a “cramdown” reduces the principal car loan down to the current market value.

America Law Group has experience on repossessions and Bankruptcy. We can help you handle the vehicle repossession and help you get financial relief.