Generally speaking, a repossession involves a creditor asserting it's contractual rights against a debtor who has violated the contract previously entered. This contract involves financing a purchase - money secured debt usually involving a motor vehicle (it can also be for appliances, computers, etc) whereby regular monthly payments are due and if not paid, the contract goes into default whereby the creditor has a right to repossess the financed property.

If your car, truck and/or motorcycle are threatened with a possible repossession, then one of the remedies available is a Chapter 13 Bankruptcy. Under Section 362 of the U.S. Bankruptcy Code, a creditor is automatically stayed from repossessing your vehicle. Furthermore, under a Chapter 13 Court supervised plan, not only is the creditor unable to repossess the vehicle, but the monthly payments can be paid through the Court's plan. Once your plan is completed, you will be able to look your creditors in the eye knowing you've met your financial obligations to them.

If you qualify, you can reduce your payments to your secured creditors. If your debt on your vehicle is more than 910 days old, then under current U.S. Bankruptcy law you only have to pay the value of the vehicle as opposed to the actual amount owed. For example: You own $9,800.00 on a car that is worth only $3,000.00 and your current payments are $402.82. Under the plan your payments for the car with today's interest could be as low as $99.99.

In order to determine whether your vehicle qualifies for this “cram-down” under the Bankruptcy Code, it will be necessary to review the debt in our office at a scheduled appointment. Whether a “cram-down” is available or not, the Chapter 13 will still stop the repossession.

Money, if it does not bring you happiness, will at least help you be miserable in comfort

 - Helen Gurley Brown