08 Jul Can filing for Bankruptcy prevent Vehicle Repossession?
Help! My car has been Repo’d
Losing your vehicle through repossession can feel like a nightmare. For most people, the family or personal vehicle is one of their most valued possessions, and it’s loss can have a very dramatic impact. If you have had a vehicle repossessed, or if one of your creditors is threatening repo, you do have some options.
Can Bankruptcy prevent car repossession?
Bankruptcy will stop a car from being repo’d, the moment it is filed the bankruptcy protection goes into place and if a car creditor repossess the vehicle, they will be in violation of bankruptcy law
Even if your car is repod and we file bankruptcy, you may be able to get it back. Texas has a 10 days right of redemption which means the car creditor has to hold the car for 10 day. So if you file within that 10 days, the creditor will be forced to return the vehicle.
Even if its beyond 10 days, if the creditor has NOT SOLD the vehicle and still has it in their possession, you may be able to get the vehicle returned.
Dealing with a Repossession without filing bankruptcy
Talk to your creditor. Often times a car creditor will allow you to roll your missed payments to the end of the note. You need to talk to them and see what options or in-house programs they may have. You won’t know unless you ask.
If your car is repossessed you still have options. The creditor must hold the vehicle for a period of 10 days and give you an opportunity to pay the balance off. You may be able to get help from family or a loan from a bank.
What if I think my Vehicle has been Repossessed Illegally?
There are a lot of dealerships that operate on the fringe of legality. If you feel like your dealer/finance company is taking advantage of you, contact the Law office of Herrin & Wright. We may be able to bring a state court lawsuit for fraud, breach of contract, or consumer protection violations.