Can I Get My Car Back After Repossession?

Was your car just repossessed? Do not panic, you have options for getting your back. You can Redeem the loan by paying the loan off in full, Reinstate the loan by catching up all the back payments or file a chapter 13 bankruptcy. In a chapter 13 bankruptcy, you may be able to get your car back and not have to pay the storage fee when you pick it up. When you file a chapter 13 bankruptcy, the automatic stay prohibits the lender from selling your car without court permission.

Modification of the Loan Terms
In chapter 13 bankruptcy, the loan for your car can be modified through the court. For example, if you owed $10,000 at the time of repossession, the loan will be modified at $10,000 plus the cost of repossession for 5 years at 5-8%.

Loan Cram Down
If your loan is more than 910 days old, another benefit of chapter 13 bankruptcy is the ability to lower the amount owed to the value of the vehicle. Meaning if your car is worth $5,000 and you still owe $10,000, the loan through the chapter 13 plan will be modified to $5,000 for 5 years at 5-8%.

Does the Lender have to Return your Car?
When your chapter 13 bankruptcy is filed, the lender will receive notice of the filing and all repossession activity will be stayed including auctioning the car. In most circumstances, the lender cooperates and returns the car within a few days. If the lender refuses to turn the car over, then a motion can be filed to force the release of the vehicle.

It is important that you act quickly when your car has just been repossessed. Please call my office at (801) 432-8682 to schedule a free consultation. I look forward to working with you

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