Prevent Repossession or Get Your Car Back Through Chapter 13
If you fear the "repo man" will take your vehicle because you are behind on payments, bankruptcy may allow you to avoid repossession and catch up on the arrears. Bankruptcy can possibly help you get your car or truck out of hock if it has already been repossessed. Moreover, Chapter 13 bankruptcy may trigger a provision that reduces what you still owe.
At the bankruptcy law firm of David F. Cannon in Nashville, we have helped clients throughout Middle Tennessee stop repossession or get their vehicles back. To find out if bankruptcy is the right solution for your situation, contact us today for a confidential consultation.
Stop Vehicle Repossession: Nashville Bankruptcy Attorney
On the day that your bankruptcy petition is filed, you are under the automatic stay protection of U.S. Bankruptcy Court. This means that your vehicle is hands-off to the bank or a third-party repo company.
Chapter 7 bankruptcy can temporarily stop repossession, but you would have to pay all the arrears up front or surrender your car. Chapter 13 allows you to keep your car and pay the past due amount over time.
- Getting your repossessed auto back — Tennessee law requires lenders to hold a repossessed vehicle for a certain waiting period before it can be sold at auction. As long as your Chapter 13 petition and a motion for turnover are filed before the time runs out, you can retrieve a repossessed vehicle.
- Refinancing your car loan through bankruptcy — If you have owned your vehicle for at least 910 days (2 1/2 years), the Chapter 13 "cramdown" provision can modify the terms of your car loan. Essentially, the vehicle is refinanced at current market value instead of the full amount you owe, often at a lower interest rate. This translates to lower or fewer payments to pay off the remainder of the loan.
Other repossessions too — The automatic stay of bankruptcy applies to any property bought on credit such as furniture, appliances or electronics. If you have owned the item for 12 months, the principal can be crammed down to replacement value. We can help you decide if you should keep the item or surrender it.
Experienced Tennessee Chapter 13 Bankruptcy Lawyer
David F. Cannon is certified as a Consumer Bankruptcy Specialist by The American Board of Certification and The Tennessee Commission on Continuing Legal Education and Specialization. He will explain your rights and your legal options to prevent repossession and solve your debt crisis. Call 615-800-3725, toll free at 877-696-8680, or e-mail our law office today to arrange a confidential consultation.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
