My Account Login Logout Map to Office Contact Us Public Home Page Call: 1-214-999-0595

Repossessions

If you have a car, truck, SUV, or other property that is on the verge of being repossessed or has been repossessed, bankruptcy can keep you from losing that property. You have several different options. First, filing a bankruptcy petition automatically stops the repossession proceedings. This gives you time to determine what options are available and which option will be the best for you. Additionally, even if your automobile or other asset has been repossessed, we may be able to help you get it back. However, you must act fast. You only have 10 days to file and retrieve your repossessed property.

Your options regarding repossessions will differ depending on whether you file under Chapter 7 or Chapter 13. Normally, you will have more repossession options regarding if you file a Chapter 13 bankruptcy.

A Chapter 13 bankruptcy will immediately, but temporarily, stop the repossession to give you time to determine how you would like to proceed. First, you may want to let the asset go back to the lender. Most debtors do not choose this option under a Chapter 13 plan. However, in this event, you simply allow the lender to take back the car or other asset. Any balance still owed by you after the lender sells the car or other asset will simply be a part of your bankruptcy plan. The Chapter 13 bankruptcy plan gives you three to five years to pay off debt, spread out over the course of the plan. Any unpaid balances that remain at the end of the plan are discharged (extinguished) no matter how much is still owed. Usually, those filing under Chapter 13 prefer to keep their vehicle and perhaps other property. The Chapter 13 plan will give you additional time to pay the lender any back payments that you currently owe. Normally, this debt is spread out over the course of the plan. Additionally, we will negotiate with the lender to change the original terms of your loan in a way that will be most beneficial to you. For example, we may be able to reduce the total amount of your debt, reduce the interest rate you are paying, change the loan's term, or a combination of all three actions. At the same time, we may be able to lower the payment amounts of your other current debts, which will give you additional funds to pay off your car or other property loan.

Depending on the age of an automobile loan, we may be able to reduce the loan amount to the vehicle's current market value, instead of the amount owed on the car. This is called cram down, which is specifically addressed by the Bankruptcy Code.

Like a Chapter 13 bankruptcy, a Chapter 7 will immediately, but temporarily stop repossessions. Again, this provides you with time to determine your options. First, under Chapter 7, you can simply let your automobile or other asset go back to the lender. When you complete your bankruptcy, your debt to your lender is discharged (extinguished) and you owe nothing. If you do not file for bankruptcy and the lender completes a repossession of your car or other asset, you will be liable for the difference between what the lender ends up selling the vehicle or other asset for, and the amount you owe on the loan. Another option is to reaffirm the debt on your vehicle or other property. Under this option, you enter into a new agreement with your lender to make payments against the loan. You also have to get current on any delinquent loan payments before the bankruptcy concludes. Again, it may be possible for us to negotiate a more favorable reaffirmation agreement. At the same time, we can get most of your other unsecured debt (such as credit cards, medical bills, etc.) discharged (extinguished). This could give you additional money to continue making payments to your lender on your automobile or other asset.

If you are faced with repossession, please immediately call the Law Office of Todd E. Tkach, P.C. to talk with one of our attorneys about your options. We offer a free initial and confidential consultation to evaluate your current repossession situation, as well as your entire financial condition. We'll discuss with you how the bankruptcy laws can best benefit you and your unique financial situation. Our analysis of your financial condition will give you the critical information you need to make a decision on how to proceed with your financial recovery. From there, you can start eliminating debt, restoring your credit and pursuing your goal of financial stability. Don't wait. Time is of the essence if you are facing repossession. The sooner you call us, the sooner we can help you get on the road to financial recovery. We are committed to helping you through this challenging time. You have our commitment that you will receive personal attention. We pride ourselves on providing prompt communication and personal, confidential consultations. We will immediately address your concerns and return your calls as soon as possible. Call us now at 214-999-0595 or toll free at 866-257-2100.