Posted on Friday, October 3rd, 2014 at 1:35 pm
Act Quickly, You May Be Able to Get Your Car Back
If your car is repossessed before you file for bankruptcy, you might be able to get the car back by filing for bankruptcy; however, you must act quickly! Generally, once the car is sold at auction, you won’t get it back. Therefore, you should contact a Kenton County Bankruptcy attorney as soon as your car is repossessed. Legally, if you have nonexempt equity in your car, the lender must return the car because it is part of the bankruptcy estate, and the repossession is considered to be an illegal preference. In practice, however, car loan lenders generally won’t return the car without an order from the court, which usually means you’ll need help from a Northern Kentucky bankruptcy attorney. Once you have the car back, you’ll still have to either redeem the car or reaffirm the contract in order to keep the car.
Chapter 13 Bankruptcy Can Also Allow You to Get the Car Back
If you were considering filing for Chapter 13 bankruptcy anyway, and do so quickly you may be able to keep your car. In Chapter 13 bankruptcy, you can repay any car loan arrears through your Chapter 13 repayment plan. So, if you can make your regular car note payment and your plan payments, you’ll be able to keep your car. The automatic stay applies to Chapter 13 too, so you should be able to stop any pending repossession sale.
Beware: If You Can’t Afford the Payments, Getting the Car Back May Not Be Your Best Option
Sometimes, getting your car back once it’s been repossessed is not the always the best option. Often, people are willing to accept any terms to get a vehicle back because they need the car, for example, to get to work. However, if you owe significantly more than the vehicle is worth and know you will have trouble keeping up with the payments in the future, you might want to contact an attorney and discuss your options.
If you or someone you know is facing repossession or has recently had his or her vehicle repossessed, contact Lawrence & Associates in Fort Mitchell, Kentucky today to get the help that you deserve!
Contact Us (859.371.5997) for a Free Consultation