Vehicle Repossession and Bankruptcy

: Reese Baker & Associates

  Filed under: Automobile

For most of us in the united states, we need a reliable vehicle to get to and from our jobs, schools, and grocery stores. A car payment is one of the most common loans in the united states. The loan is often secured by the vehicle itself.

If you get behind in your payments, they may repossess the vehicle. Although not the usual practice, the lender can take your car with as little as one missed payment. Your automobile lender will generally not give you any advanced notice that the vehicle is about to be repossessed.


If your car is reliable and you want to keep it, you can file a Chapter 13 bankruptcy. You will be able to make the back payments over a period of three to five years.

If you don’t wish to keep the vehicle, you can file Chapter 7 bankruptcy and the car can be turned back into the lender and you will not owe anything further on the loan.

Automatic Stay

If you file bankruptcy before the car is repossessed the automatic stay will stop any legal actions against you. If you file bankruptcy after your vehicle is repossessed the bankruptcy judge could approve a plan of repayment and you could get your car back provided they didn’t sell it.

If you are worried that your car is about to be repossessed, contact a McAllen bankruptcy attorney to find out what options you may have to get some financial relief.