Vehicle repossession

Vehicle repossessions occur when the lien holder attempts to take back the vehicle or collateral due to missed payments. Someone may also choose to voluntarily turn in their vehicle if they can no longer maintain the payments. This is referred to as a "Voluntary Repossession."

If your vehicle has been repossessed or if it is imminent or you can no longer afford the monthly payments, our lawyers have several options to help you.

Keep Your Vehicle

If you wish to maintain ownership on a vehicle loan but are behind on payments, our attorneys can set up repayment penalties. Through the Chapter 13 our lawyers can stop the repossession before it happens or get the vehicle back if it has already been repossessed - as long as it has not been sold at auction.

We can also alter your vehicle payments if needed to work within your budget. Your attorney can lower your vehicle loan terms through the filing of a Chapter 13 Reorganization. This program will modify your vehicle loan and spread the payments over the course of the program (36 - 60 months) at a reasonable interest rate with no continued late payments by modifying the contract to reduce the interest rate or extend the terms of the loan.

Reduce What You Owe

If you have owned the vehicle for more than 910 days or 2 1/2 years, the attorney can actually reduce the amount owed on the vehicle. This reduces the secured claim on the vehicle to the present fair market value and converts the balance owed on the loan to unsecured debt. The benefit is that you may be eligible to discharge a portion of the debt at completion of the Chapter 13.

In that event that you file a Chapter 7 Fresh Start, you may have the option to re-negotiate the terms of your vehicle loan.