Having a car has become a staple-possession for many families today. If you’ve fallen behind on your car payments and are concerned about repossession, filing for bankruptcy may allow you to keep it, or at the very least, buy you some valuable time to find another vehicle.
The first step is to remain in touch with the lender. The lender would rather be receiving some sort of payment from you than repossess the car. Attempt to work out some sort of payment arrangement with the lender. If that doesn’t succeed, or if too much time lapses between the times you contact them and the last time you sent a payment in, repossession may be likely. If the car is repossessed, it is then likely to be sold for less than the amount you owe on your loan. When that happens, the lender will likely come back to you seeking the difference between the amount you owed on the loan and the amount they received from selling it. It is good to keep in mind, however, that in most situations this amount would be discharge-able in bankruptcy.
There are other options available to you as well, such as redemption, reaffirmation, and “cram-down.” We can also force the lender to accept small payments over time to catch up on the loan while you continue to make your regular payment.
Each of these are possibilities that can be discussed at your free, confidential, consultation at the Heller & Thyen, P.A.