Stop the Vehicle Repossession Process

Filing for Chapter 7 bankruptcy or Chapter 13 bankruptcy may help you to save your vehicle from repossession. The act of filing for bankruptcy creates an automatic stay that stops many different collection activities, often including vehicle repossession.

If you qualify to file for a Chapter 7 bankruptcy, unsecured debts such as medical bills and credit card debt can be discharged, eliminating them completely. Secured debts, such as auto loans are not typically discharged by a Chapter 7 bankruptcy, so if you still owe money on your auto loan your vehicle can be repossessed, even if the amount owed is discharged.

In order to prevent this from happening, you can save your vehicle by using a process called redemption. One of the provisions in a Chapter 7 bankruptcy states that you are only required to repay the current market value of your vehicle, potentially cutting your total amount owed on your vehicle down. If you don’t qualify for a Chapter 7 bankruptcy, a Chapter 13 bankruptcy might also help to prevent your vehicle repossession.

If your vehicle has already been repossessed, the filing of a Chapter 13 bankruptcy within ten days of the repossession will allow you to get your car back and renegotiate the car loan.

Contact a Utah Bankruptcy Lawyer

If you are worried about repossession of your vehicle or foreclosure of your home, contact The Law Offices of Theron D. Morrison for help. We can help you fight aggressive creditor tactics and start the process of financial recovery.

For a free consultation appointment with a bankruptcy lawyer at our offices in Ogden, Sandy, Orem, or Logan, Utah, call (801)528-6759 or send us an email.