One of the great things that chapter 13 bankruptcy can accomplish is the return of a vehicle that was repossessed. Your vehicle remains your property until such time that it is sold at auction. Thus, until such time that vehicle is actually sold, you still own it and you have the ability to propose a repayment plan. Chapter 13 bankruptcy provides for that very plan.
The Plan
Under chapter 13 law, you can repay a vehicle debt over a 60 month period of time. During this 60 month period of time, you have to make regular, consistent payments to a chapter 13 trustee. The chapter 13 trustee will divide out a certain portion per month to go towards your creditors including your auto finance company. Under the Thompson case, provided your vehicle has not already been sold at auction, the lender must return the vehicle and cannot withhold that vehicle by demanding repossession fees and storage fees. The case basically went on to say that you own that vehicle until such time that it is sold. Therefore, if you can agree to repay and adequately protect the lender, then the lender must voluntarily return the vehicle to you.
Creditor Cooperation
I have handled numerous cases where lenders simply do not want to cooperate with the law. I have had to file motions for sanctions in an effort to get the vehicle returned to my client. Provided the client has not had more than one case dismissed within the last year, then there will be an automatic stay for at least 30 days which can then be extended. Provided there is a stay and provided there is adequate protection, the lender must return the vehicle.
Save Your Property
This is a great way to save an item of property from losing it to an auction. What a great way to maintain your family vehicle, the vehicle you need for work, the vehicle you need for recreation, and make arrangements to pay for it. If you are someone who is struggling financially, and possibly not able to make your regularly scheduled auto payment, chapter 13 might be just the answer you’re looking for. Under chapter 13 law, you can often paid less than what is fully owed on the vehicle and you can often reduce the interest rate being paid back to the finance company.
For more information on how chapter 13 can help you save a vehicle repossession or recover a vehicle that has already been repossessed, call my office at 847-520-8100. The advice you get can change your financial life.
