Just say no. If a creditor or "repo man" asks you for the keys to your car or tries to take it from you without a court order in hand — JUST SAY NO. Do that and they can't take it.
Car repossessed? It may not be gone for good. Contact the Redman Ludwig, P.C. today and talk to an experienced attorney.
At Redman Ludwig, P.C., we have been helping clients deal with bankruptcy and all of its related issues for 30 years. Because of that, we see cars the way our clients do — as indispensable to continued employment, family, and all the little things that have to be done just so you can live a decent life. Unfortunately, we've also seen too many people who've had their car repossessed because they waited too long to talk to an attorney.
If your car has already been repossessed… the lender needs to be contacted immediately and payment arrangements need to be made. Most lenders prefer not to repossess an auto if it can be avoided. However, if too much time passes between the time your car is possessed and the time you contact them — the car is likely to be sold for less than your loan amount and then the lender will come back to you seeking the difference between those amounts.
Filing for either Chapter 7 or Chapter 13 before… the car is repossessed can allow you to keep it. In Chapter 7 bankruptcy you have two options. After filing, you can voluntarily "reaffirm" your car loan and continue making payments just as you would have before — provided you can pay any past or overdue payments in full immediately. Your second option under Chapter 7 is called "redemption." Redemption, in terms of keeping your car, simply means that you can buy the car outright by paying its book value as opposed to the value of the loan. If your loan is $5,000 but the car itself is only worth $2,000 today — $2000 is what you'll pay. There are several companies that specialize in lending money for car redemption. There are also companies who may sell and finance a replacement vehicle for you.
Chapter 13 provides other options. If you are behind on car payments and do not have the money to pay them off immediately as part of reaffirming your loan in a Chapter 7, a Chapter 13 repayment plan bankruptcy will give you time to pay those off while continuing to make regularly scheduled payments. Chapter 13 also brings the "910 Day Rule" into play. In short, if you are filing for Chapter 13 bankruptcy relief and purchased your car less than 910 days ago (roughly 30 months) — you will have to pay the full value of your loan. However, modifying that loan payment and your interest rate are real possibilities. If you purchased your car more than 910 days ago—you may be able to "cram-down" much like redemption where you essentially pay the book value of the vehicle through your Chapter 13 payment plan and it's yours.
Central Indiana Bankruptcy Solutions — Toll Free 866-793-5226
Behind on payments? You can stop your car from being repossessed.
Call our consumer bankruptcy lawyers in Indianapolis directly or reach us online by completing the brief form located on the contact us page of this Web site. We offer reasonable payment plans and will deduct initial consultation costs from your fee should you decide to retain us.
