my car was never repossessed after chapter 13
Copyright ©2021 MH Sub I, LLC dba Nolo ® Self-help services may not be permitted in all states. Altering the terms of the loan through Chapter 13 is called a “cramdown.” (Learn how cramdowns work with car loans.) In case the lender bank refuses to repossess car for which you defaulted on the loan, you have plenty of options open to you. Chapter 13 allows you to cure missed payments on cars that are either leased or refinanced over a period of 3 to 5 years or longer through your Chapter 13 Plan. Call a local bankruptcy attorney and request a free consultation to discuss whether or not a Chapter 13 bankruptcy is right for you and your financial situation. Filing Chapter 7 bankruptcy helps wipe away debt. For example, if you are paying back all of your debts at 100 cents on the dollar, you are going to be able to keep the car. (To learn about two other options of regaining your car after repossession, reinstatement of the loan and redemption of the vehicle, see Car Repossession: What's the Difference Between Reinstatement and Redemption.). An Automatic Stay also prevents a car loan lender from repossessing your vehicle. After making payments on her car loan for three years, Betty’s car had lost value, but she still owed more on it than it was worth. Car Lenders Can Collect a Deficiency After Repossession. Car repossession can be a catastrophic event since a majority of Americans depend on their vehicle to get to work, school, the grocery store and everywhere else in their lives. In a chapter 7 bankruptcy, the trustee can seize your property and sell it to pay debts. It was almost new. Your perseverance in ‘chasing’ the bank may compel it to provide a clear title to you, rather than face legal action and also get saddled with your attorney’s fees. Can my car be repossessed during Chapter 13? Doing so will erase the entire debt when the bankruptcy is discharged. The case pertains to a lender’s refusal to release the lien to the debtor to enable him to junk the car that was worthless. In addition to getting your car back, Chapter 13 may allow you to extend your car payments beyond the original term of the loan. This will prompt the repair shop to assert a mechanics lien and sell your car after notifying the lender. If the motion is necessary, it may take the judge several days to schedule a hearing. However, for this to happen, the Statement of Intention in Chapter 7 bankruptcy should state that you are surrendering your vehicle. If Lien Holder Will Not Repo My Car, What Options Do I Have? Even if Betty purchased the car within the 910-day “look back” period, filing a Chapter 13 case will still allow her to get the car back and stretch out payments on the outstanding balance (along with any repossession charges) over the course of her Chapter 13 plan. What to watch for after your vehicle was repossessed Even if the repossession was strictly by the book, there are a number of things you need to know about the post-repossession process. However, threatening legal action against the lender for violation of the court’s order is an often used option by the debtor. In certain circumstances, it makes sense to file a Chapter 13 to get your car back, but it may also be a better idea to let the vehicle go. #2 Redeem for $1Another option is to get your attorney to file a motion to redeem the vehicle for $1. QUESTION What should be done if my car was repossessed after we had filed chapter 13? Filing bankruptcy in Georgia: Step-by-step process for chapter 7 and 13, How to stop eviction after foreclosure sale (Updated), A Bankruptcy Chapter 7 Lawyer Can Help You Get a New Lease on Life. I think you will agree that the worst result is the loss of your car. I will be filling within next 2/3 months. In such a situation, you merely try to palm off the car to the bank by filing for Chapter 7. We are not in the kind of community where owning a car is an option. IF your vehicle was purchased over two and a half years before filing your Chapter 13, AND. Cramming Down the Value in Chapter 13.
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