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In Business Since 1983
In Business Since 1983
706-322-8557

Columbus Attorney Representing Repossession Clients

When you file for bankruptcy, your car, other vehicles, recreational investments (such as boats, snowmobiles, campers and jet skis) are essentially treated similar as a home foreclosure. If you have been served a notice of repossession by your lender, there are things that you may be able to do to stop the repossession, delay the repossession, or even give you the time to attempt to refinance the item of value in a manner that would be affordable to you following a bankruptcy.
One of these actions available to many people seeking to save their vehicles is to file for Chapter 7 or Chapter 13 personal bankruptcy.

How Chapter 7 Bankruptcy Can Save Your Vehicle From a Repossession

When a personal Chapter 7 bankruptcy case is filed, an automatic "stay" is issued to all creditors. This "stay" stops all debt collections actions, debt litigation and, yes, repossessions as well. While the "stay" is only temporary, pending the outcome of the bankruptcy claim, the Chapter 7 bankruptcy can help you in a few ways:
  • Give you the ability to have certain debts discharged, enabling you to afford the current debt relating to the repossession going forward. This can put an end to the repossession process entirely.
  • Give you time to restructure, refinance or modify your current debt, thus stopping the repossession process.
  • Allow you to have the debt discharged by including the item that was being repossessed in your bankruptcy (if this occurs, you will lose the item that was being repossessed).
  • Give you time to sell the item that is being repossessed for a minimum of what is owed on it.

How Chapter 13 Bankruptcy Can Save Your Vehicle From a Repossession

When a personal Chapter 13 bankruptcy case is filed, an automatic "stay" is issued to all creditors. This "stay" stops all debt collections actions, debt litigation and, yes, repossessions as well. The Chapter 13 bankruptcy can help you in a few ways:
  • Give you the ability to consolidate debts in an affordable manner, possibly enabling you to afford the current debt for the item that is being repossessed going forward. This can put an end to the repossession process entirely.
  • Give you time to restructure, refinance or modify your current debt, thus stopping the repossession process. You may also include in the Chapter 13 plan a provision to pay the payments you are behind or the total debt on the vehicle over a period of up to five years.
  • Give you time to sell the item that is being repossessed for a minimum of what is owed on it.
While an automatic "stay" is issued to all creditors involved in the bankruptcy, the stay in a Chapter 7 is only temporary, and following the bankruptcy, the creditor will still want their money if the debt has not been discharged in the bankruptcy, and may resume their debt recovery or repossession efforts.
If you do not have the money necessary to stop the repossession or have not made an agreement with the creditor that will stop the repossession process, the repossession will occur if the lender wants it to happen.
Even when this happens, you still have options and rights that must be protected.
We are extremely detailed in our preparation regarding bankruptcy and bankruptcy related legal issues, provide a comprehensive approach in seeking a successful bankruptcy, and guide you through this difficult process with the dignity and respect you deserve.