Repossession of a Motor Vehicle
Failure to make all required payments on a car loan can result in harsh consequences. Lenders will typically attempt to repossess a vehicle after two or three payments are missed. In most cases, the lender will take the vehicle back without the permission from the borrower.
Under the applicable bankruptcy law, a lender is not permitted repossess a vehicle while a bankruptcy case is pending. By filing bankruptcy, the borrower can prevent repossession.
If a Chapter 7 case is filed, the debtor can at least delay the repossession of the vehicle until the case concludes or until the creditor is granted permission from the court.
In a Chapter 13 case, the debtor can prevent repossession, so long as the debtor can propose a plan that results in the repayment of the default amount.
If you would like to discuss the remedies available in your particular situation, please contact our office for a free consultation.