Vehicle Repossession Help
Vehicles can be repossessed even when you are in bankruptcy. In bankruptcy, you are required to make your vehicle payments. That is, if you want to retain possession of your vehicle. Lenders can take your vehicle and sell it if you do not make it payments.
If vehicle payments are not current, the lender files for relief from the stay. If granted, your lender has the right of possession of your vehicle. You are no longer the owner, and neither is the bankruptcy estate.
However, your lender cannot demand that you return the vehicle to them. You do not have to cooperate to bring your car to a location of their choice. It is up to the lender to locate your car and tow it.
Make sure you make your vehicle payments. Otherwise, you may look out the window and see your vehicle being towed away. Once they hook up that car, you have no right to stop the towing company. The relief from stay is all the lender needs to take the vehicle.
You may have your vehicle parked somewhere. If you come out and your vehicle is gone, it may have been towed away.
Bankruptcy Vehicle Repossession – Case Example
Situation:
- Debtor filed for Chapter 7 Bankruptcy.
- The lender got relief from the stay and an order to allow them to repossess the car from the Debtor.
- The lender filed a two-page motion seeking the Court’s approval to have the Debtor physically return the car to the Lender.
Outcome:
- The court denied the motion.
- The Bankruptcy Court stated that the bankruptcy code does not require a debtor to surrender collateral to a creditor.
- When the Lender receives stay relief and rights to regain the car, the car is no longer property of the estate (bankruptcy).
- Lender can take whatever action as to such property as is permitted by applicable non-bankruptcy law.
In summary, the lender must go out and retrieve the vehicle. The debtor is not required to bring the car to the lender
No client had their vehicle repossessed under my watch unless they no longer wanted it. I work closely with my clients, so I know their goals. If you need vehicle repossession help, call me now.
If you need expert advice regarding the repossession of your vehicle, whether or not you are in bankruptcy, call me now for a Free Bankruptcy Consultation.
If your vehicle has been repossessed, I can help you get it back…….
- A primary goal of filing under Chapter 13 Bankruptcy is to protect your equity, assets, and retirement savings.
- You want to be able to catch up on payments that you have fallen behind.
- That is the case with your vehicles. If you have fallen behind in car payments, you are able to include your past due payments in your bankruptcy plan. This means your past-due payments are spread out over the life of your plan.
- You continue to make your regular monthly payments, and your arrears are handled in the Bankruptcy Plan.
I am here to help you get rid of debts, put you in a better position for financial success, and keep your assets.
My clients mean more than a case number to me. Please see my clients’ reviews.
Call me today: My cell phone number is (201) 446-5904. There is no screening of my calls. When you call, you reach me.
