Will filing bankruptcy prevent my car from being repossessed? 19 Answers as of June 22, 2011

I entered into a title loan in October 2010. Now I'm having problems making payments. How do I prevent my vehicle from being repossessed? Is bankruptcy and option?

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Cartwright Law Firm
Cartwright Law Firm | Andrea Cartwight
A Chapter 13 Bankruptcy can help you protect your vehicle from being repossessed. To qualify for a Chapter 13, you must have regular income coming into the household. I would recommend that you contact a bankruptcy attorney immediately to know your rights and whether you qualify for a Chapter 13 bankruptcy. A Chapter 13 bankruptcy is a complex process therefore you need to have proper representation. I recommend you seek legal advice before the vehicle is repossession. If you should have any further questions or concerns, please feel free to contact me.
Answer Applies to: Michigan
Replied: 6/22/2011
The Law Office of Mark J. Markus
The Law Office of Mark J. Markus | Mark Markus
Bankruptcy will temporarily stop your vehicle from being repossessed, but unless you reaffirm the debt (in a Chapter 7) and catch up on the payments, the creditor will obtain permission from the bankruptcy court (via a Motion for Relief From the Automatic Stay) to proceed with foreclosure. In a Chapter 13, you may have the ability to reduce the total owed on the vehicle and pay it off through your plan.
Answer Applies to: California
Replied: 6/22/2011
Mercado & Hartung, PLLC
Mercado & Hartung, PLLC | Christopher J. Mercado
Once you file, the Automatic Stay will prevent creditors with proceeding.
Answer Applies to: Washington
Replied: 6/22/2011
Law Office of Maureen O' Malley
Law Office of Maureen O' Malley | Maureen O'Malley
Your car could be repossessed in a Chapter 7 if you're behind on your payments. I'm betting the debt is much higher than the value of the car, though, and the interest is even higher. So you could file bankruptcy and walk away from the car. While you probably need a car, my guess is that you can do much better.
Answer Applies to: Virginia
Replied: 6/22/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
It is an option. Consider a Chapter 13 to pay off the car at lower interest rate.
Answer Applies to: California
Replied: 6/22/2011
    Greifendorff Law Offices, PC
    Greifendorff Law Offices, PC | Christine Wilton
    If you want to keep your car, you must make the payments. You gave up the title for a loan. In order to get the title back, you must pay that loan. Bankruptcy will only temporarily stop them from collecting or repossessing the car.
    Answer Applies to: California
    Replied: 6/21/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    A chapter 13 payment plan will prevent your vehicle from being repossessed. In a chapter 7 there will be an automatic stay put the creditor will be ble to file motion for relief from the automatic stay. In chapter 7 you can reaffirm the debt if the lender and you mutually agree to the terms of the agreement.
    Answer Applies to: California
    Replied: 6/21/2011
    Daniel Hoarfrost, Attorney at Law
    Daniel Hoarfrost, Attorney at Law | Daniel Hoarfrost
    A bankruptcy will prevent a repossession, but only temporarily.At some point, you will have to make up past due payments. If the car has depreciated, one option is to file a Ch 13 plan and reduce the amount of the lien to the value of the car.You would have to wait until after 270 days from the date you took out the loan to take that approach.
    Answer Applies to: Oregon
    Replied: 6/21/2011
    Jackson White, PC
    Jackson White, PC | Spencer Hale
    It is an option. If you just messed up in the past but you can begin making payments on time and need a month to get current then a chapter seven. Otherwise a chapter thirteen could be beneficial. My advice would be to talk to an attorney about your various options in a chapter thirteen.
    Answer Applies to: Arizona
    Replied: 6/21/2011
    Bird & VanDyke, Inc.
    Bird & VanDyke, Inc. | David VanDyke
    Yes, but in a ch7 you would only receive temporary relief. Since the car loan is a secured debt in the end you must either pay as agreed, make a new agreement or give the car back. A ch 13 can do other things to help you with secured debts.
    Answer Applies to: California
    Replied: 6/21/2011
    Burnham & Associates
    Burnham & Associates | Stephanie K. Burnham
    Bankruptcy may be an option but keeping your car may involve more than just filing. You should speak with a Bankruptcy Attorney for assistance in this matter.
    Answer Applies to: New Hampshire
    Replied: 6/21/2011
    Indianapolis Bankruptcy Law Office of Eric C. Lewis
    Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
    Chapter 13 reorganization would probably work best in your case. You should consult an attorney.
    Answer Applies to: Indiana
    Replied: 6/21/2011
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    Bankruptcy will stop your car from being repossessed temporarily while the automatic stay is in place, but if you can't make your payments, the car financing company will just go to court and ask that the stay be lifted because you are not making your payments and then repossess your car.
    Answer Applies to: Michigan
    Replied: 6/21/2011
    Colorado Legal Solutions
    Colorado Legal Solutions | Stephen Harkess
    Bankruptcy may help. A Chapter 13 plan may change the payment structure. However, one way or another the loan will have to be paid or you will need to give up the vehicle. You cannot keep the vehicle and discharge a secured loan in bankruptcy.
    Answer Applies to: Colorado
    Replied: 6/21/2011
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    If it is a Chapter 7, only as long as the creditor does not file a motion for relief form stay or at best until the case is closed in about 4 months or so. After that, they can repossess.
    Answer Applies to: California
    Replied: 6/21/2011
    Ursula G. Barrios Law
    Ursula G. Barrios Law | Guillermo Machado
    Bankruptcy only prolongs the inevitable if you don't pay that car loan.
    Answer Applies to: California
    Replied: 6/21/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    It might be. We'd have to see your numbers to answer that. See a lawyer ASAP.
    Answer Applies to: Georgia
    Replied: 6/21/2011
    Law Offices of Virginia E. Fortunato
    Law Offices of Virginia E. Fortunato | Virginia E. Fortunato
    If you have financed a vehicle and have fallen behind on payments you can file a Chapter 13 Bankruptcy to stop repossession. A Chapter 13 will give you the opportunity to catch on your missed payments. In some circumstance you may be able to lower you interest rate on your vehicle payments or even decrease the amount you owe on the vehicle. If you file a Chapter 7 Bankruptcy these options will not be available to you and you will ultimately lose the vehicle (although it will temporarily stop the repossession).
    Answer Applies to: New Jersey
    Replied: 6/21/2011
Click to View More Answers:
12 3 4 Free Legal QuestionsConnect with a local attorney