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How Does Bankruptcy Help with Vehicle Repossessions?

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How Does Bankruptcy Help with Vehicle Repossessions?

Will I Ever Get My Car Back If It’s Repossessed?

Has your vehicle been repossessed? Before you panic, take a deep breath – and know your rights.

The United States is currently experiencing the highest rate of automobile loan defaults this century – and that includes the rate of defaults during the recent financial crisis. At any given time, four and 10 percent of all U.S. car payments are at least 90 days late. That means repossessions are becoming increasingly widespread as creditors try to limit their losses. A repossession happens when a financing company believes you have gone too long without making full payments on the vehicle. They usually take back the vehicle without warning, sending someone to tow it right out of your driveway. Their next move will be to sell the vehicle as fast as possible. If this has happened to you, move quickly to get your car back with the help of a bankruptcy attorney.

Can I Fight A Vehicle Repossession?

Even if your car has suddenly disappeared from your driveway, that doesn’t mean it’s gone forever. This could turn out better than you’re expecting because you still have rights in this situation. If you need your car to get to work, there are options you can pursue. A bankruptcy attorney can help you get your car back – and keep it – by filing for a Chapter 13 bankruptcy. Plus, your financial outlook for your car payments will be better after filing. In a bankruptcy, you are generally allowed to reduce interest rates on a vehicle down to prime plus one to two percentage points. In some cases we can reduce the principal balance owed on the vehicle to the value of the car and adjust the interest rate.

How Does Bankruptcy Help Me Get My Car Back?

When you pursue Chapter 13 bankruptcy, you are agreeing to a financial plan that will help clear your debts, repay pay some debts, or a combination of both. Bankruptcy immediately stops your creditors, including car financing companies, from taking your belongings while the bankruptcy process is in place. Seize your chance to step in and demand the return of the car, as long as it hasn’t been sold at auction. Act fast. You’re within your rights, so work with a lawyer to make it happen swiftly.

Can the Financer Refuse to Return My Vehicle?

If the financing company refuses to release your car after you have filed for bankruptcy, call your attorney at once. Under a ruling by the Seventh Circuit Court of Appeals called In re Thompson, a creditor cannot maintain control of your vehicle after you file for bankruptcy or they are failing to comply with the automatic stay. The automatic stay is the bankruptcy rule that says creditors must stop pursuing collections against you for a specified period of time. Use the power of the law. Get the legal help that you need to get your car back now.

Sawin & Shea – Indianapolis Bankruptcy Attorneys

Filing for bankruptcy is not the end. It’s the beginning of a new financial life for you. The Indiana bankruptcy attorneys at Sawin & Shea can help you get rid of the overwhelming debt and advise you on life after bankruptcy.  We are here for you during this life-changing process. Please do not hesitate to call us today at 317-759-1483 or send an email for a free consultation. We are ready to help.

Video Transcript

Has your car just been repossessed? It seems like almost everyday I turn around, I’m getting that phone call with that panic in the voice, the person upset on the other line. “How am I gonna get to and from work, now that they’ve taken my car?”

First thing, take a breath. There are steps that we can take to help you, not only get your car back, but help you keep it. In a bankruptcy proceeding, Chapter 7 or Chapter 13, we can look at forcing the vehicle to be returned.

Specifically, in a Ch. 13, if you wish to keep the collateral, we have the right to not only step in and force the return of the vehicle, pursuant to a set of circuit opinions called Henry Thompson. We can make them return the car to you as long as that car has not been sold at auction.

We can then look at changing that contract down to potentially just the fair market value of the vehicle, and look at reducing the interest factor. In a bankruptcy, we are allowed to reduce interests rates on a vehicle, down to prime plus 1 to 2 percentage points based upon what’s considered the risk factor of the loan.

So, if you wish to keep your vehicle, and it’s important to you, and you need that transportation to and from work, please give us a call. We’d like to help you, and get that vehicle back, so you can maintain your job, and get to and from work.

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No upfront attorney fees in qualifying cases. Pay only court filing fee, credit reporting fee, and pre-bankruptcy credit counseling session fee to get a case on file to stop garnishments, repossessions, and certain court actions. Restrictions may apply. Please call to discuss your situation and learn how we can help.