If your vehicle is in danger of, or does get repossessed in North Texas, it is critical to take action immediately. We can help you prevent a pending repossession or reacquire a recently repossessed vehicle through a Chapter 13 bankruptcy.

Filing Chapter 13 bankruptcy immediately after repossession should enable you to get your car back. Also, if you are behind on the car and facing a repo, then a Chapter 13 will give you the chance to pay back the arrears over a five-year period rather than having to come up with the money all at once. If you purchased or last refinanced the vehicle over 2 ½ years ago, then you can pay the value of the vehicle rather than the amount owed over a five-year period. Almost without exception, your monthly car payment will be reduced when you file Chapter 13.

In other words, if your monthly payments are around $550 and you did not recently purchase the vehicle, it may be valued at around $10,000. That will lower your monthly car payment to somewhere around $230. The amount owed over and above what the car is worth should be discharged in most cases just like your credit card debt.

Deficiency After Repossession Sale

If your vehicle has been repossessed and you no longer wish to keep the vehicle, understand that you will be sued for the deficiency after the lien holder sells the vehicle. In most cases, filing bankruptcy under either Chapter 7 or Chapter 13 will result in the discharge of the entire amount of debt you owe on the vehicle. When the debt is discharged, you will not have to pay back any deficiency that may exist after the repossession sale.


Feel free to visit our Bankruptcy FAQs. To learn how we have helped clients in North Texas deal with overwhelming debt and other legal problems, please view our Client Testimonials .

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