Repossession
How Bankruptcy Can Stop Repossession
Losing your vehicle to repossession doesn’t just mean losing the car — for a lot of people, it means losing the ability to get to work, get the kids to school, or keep life running. If you’re behind on your car payment and worried about repossession, bankruptcy can often help, whether the repo hasn’t happened yet or already has.
The Automatic Stay Stops Repossession
Filing for bankruptcy triggers an automatic stay, a court order that immediately stops most creditor actions — including a scheduled or in-progress repossession. If your vehicle hasn’t been repossessed yet, filing can prevent it. If it already has, bankruptcy may, in some circumstances, help you recover it so you can address the debt in your case.
Chapter 13: Catching Up on Your Car Loan
Chapter 13 bankruptcy is typically the best option when your goal is to keep your vehicle. Instead of paying the lender directly, your missed payments and remaining balance can often be restructured into your repayment plan — sometimes even reducing what you owe or your interest rate, depending on the specifics of your loan and vehicle.
Chapter 7 and Repossession
In some Chapter 7 cases, if you’re current on your loan and want to keep the car, you may be able to reaffirm the debt and continue making payments directly to the lender outside of bankruptcy. We’ll walk through whether that’s the right move for your situation.
What Bankruptcy Can Do
- Stop a scheduled repossession before it happens
- In some cases, help recover a vehicle that was recently repossessed
- Restructure past-due car payments into an affordable plan
- Stop the collection calls and garnishment that often come with an auto default at the same time
Our Promise to You
We only practice bankruptcy law, so you’re not getting split attention. You’re getting focused advice, an honest read on your options, and a plan that fits your actual situation.
If repossession is looming — or already happened — time matters. Call 503-894-4891 for a free consultation about your options.