Creditors may try to repossess your car, truck or your motor home if you are behind in payments. Filing for bankruptcy will stop asset repossession. If you file bankruptcy, creditors cannot repossess assets such as a car. If you are behind with your payments, you can pay the missed payments over time through a chapter 13 bankruptcy and resume your regular payments. An alternative which may provide you with lower payments would be to pay the entire car balance plus interest through the bankruptcy plan. If the car was purchased more than two and one half years before the bankruptcy was filed, you may be able to save even more money by cramming down the value of the car. In other word, if you owe $20,000.00 on a car worth $14,000.00, you can propose to pay $14,000.00 plus interest through the plan which result in substantial savings.
Besides stopping asset repossession, bankruptcy can also stop:
- Wage garnishment
- Lawsuits by creditors
- Foreclosure
- Other collection actions
My Vehicle Has Been Repossessed. Can I Get It Back?
Maybe. In many instances, if an automobile has been repossessed by a creditor, but has not yet been sold, an individual can get it back by filing Chapter 13 bankruptcy. Usually, creditors will hold the property for around 15 days. If bankruptcy is filed before the creditor has resold the motor vehicle, an individual can usually get it back.
