Stop Vehicle Repossession with Bankruptcy

Filing can immediately stop repossession efforts and may help you keep your vehicle.

Overview of Bankruptcy and Repossession

Facing vehicle repossession can be stressful and disruptive, especially when reliable transportation is essential for work and daily life. Bankruptcy can be an effective tool to stop repossession and provide options for keeping or restructuring vehicle debt.

When a bankruptcy case is filed, an automatic stay goes into effect immediately. The stay prohibits creditors from continuing collection actions, including vehicle repossession. In most cases, this stops a pending repossession and prevents further collection efforts while the case is active.

Timing is critical. Filing before repossession occurs generally provides the most options. If the vehicle has already been taken, a prompt filing may still help depending on whether it has been sold.

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Tell us about your situation. We will explain whether Chapter 7, Chapter 13, or another path is the right next step.

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Our Results

For more than 40 years, Mezher Law has guided individuals and small businesses through Chapter 7 and Chapter 13 bankruptcy.

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Why Mezher Law

When repossession is imminent, or has already begun, timing and strategy are critical.

  • Filing in these situations requires quick action.

Our firm understands what is at stake and knows how to act decisively to protect you.

Chapter 7 & Repossession

In a Chapter 7 bankruptcy, debtors generally have several options regarding a vehicle. Chapter 7 may be appropriate for individuals who cannot afford their current vehicle payment or owe more than the vehicle is worth.

The automatic stay can stop a pending repossession while you decide whether to keep the car or let it go. Keeping it still depends on exemptions and whether you stay current or reaffirm the loan.

  • Reaffirm the loan, agreeing to continue making payments and keep the vehicle
  • Surrender the vehicle and discharge any remaining balance owed

Chapter 13 & Repossession

Chapter 13 is often used by individuals who want to keep their vehicle and catch up on missed payments. Through a court-approved repayment plan, debtors may cure past-due amounts, restructure certain vehicle loans, reduce the interest rate or balance in qualifying cases, and prevent repossession as long as plan payments are made.

That plan typically runs three to five years. The stay can remain in place for the life of the plan so long as payments continue.

After Repossession Has Occurred

If a vehicle has already been repossessed, bankruptcy may still help depending on the timing and whether the vehicle has been sold. In some cases, filing quickly may allow the debtor to recover the vehicle. Bankruptcy can also eliminate any deficiency balance owed after the sale.

If you surrender the vehicle in the case, any remaining loan balance is typically discharged, meaning you are no longer responsible for paying it.

Acting Before the Tow

Speak with an attorney as soon as repossession is threatened. Share the vehicle, the lender, and the timeline. We will explain whether Chapter 13, Chapter 7, or another path can stop the repossession and keep or surrender the car in a way that makes sense.

You provide documents. We prepare the petition and, when you need to catch up on the loan, a Chapter 13 plan. Once the case is filed, the stay can halt the repossession. We attend the meeting of creditors with you and stay with the matter through discharge.

Looking for a Bankruptcy & Vehicle Repossession Attorney Near You?

Call or message us to talk through your finances and options.

513-474-3700 Contact Us
Mezher Law attorneys

FAQs

Filing generally triggers an automatic stay that can stop repossession while the case proceeds. Timing is critical. Filing before repossession occurs generally provides the most options.

If you surrender the vehicle, any remaining loan balance (a deficiency) is typically discharged, meaning you are no longer responsible for paying it.

Timing is critical. Filing before repossession occurs generally provides the most options. Speaking with an experienced bankruptcy attorney as soon as possible can help protect your rights.

Chapter 13 is often used to keep a vehicle and catch up on missed payments. Through the plan you may cure past-due amounts and prevent repossession as long as plan payments are made.

Bankruptcy may still help depending on the timing and whether the vehicle has been sold. In some cases, filing quickly may allow you to recover the vehicle. It can also eliminate a deficiency balance after a sale.

Testimonials & Results

Highly recommend Mezher Law when it comes to filing for bankruptcy. Christine and Joe were both easy to work with and made an uncomfortable process comfortable and easy. Thank you for helping me get back on the right track!

Ryan F.Bankruptcy Client

Mezher Law goes above and beyond to help you. They actually care about your situation. Christine is very nice and professional and made me very comfortable through my bankruptcy. I would recommend this law firm to everyone. Very caring group. Thank you all!

Anita G.Bankruptcy Client

This is a wonderful law firm. Joseph Mezher took my auto accident personal injury case. He was empathetic, detail oriented and extremely helpful. My settlement was for many many times what the other driver's insurance company offered me. I also appreciated going to the office in a suburban location, not downtown. Try them!

Barbara G.Personal Injury Client

Joe and the firm at Mezher Law are very helpful and helped us get great results. They are very knowledgeable, experienced and forthright and represented us in the best way possible. We felt that they were excited about getting great results for us and we became close friends. I feel they were warriors for us, never stopped pushing and got the best results possible. I would recommend Joe and the firm for any needs that someone would have, they are the best available.

Robert C.Past Client

Kathleen, Christine and the rest of the firm are very attentive and informative throughout the entire process of your case. My husband and I worked with them for many years and they were super supportive and helpful and kept us in the loop and updated every step of the way. We appreciate and value them as our attorneys.

Jenn F.Past Client

My family and I have worked with Kathleen and her daughter Christine many times for various reasons. We've gone to this law firm for 20+ years and have always found it to be efficient for all of our needs and it is obvious they care about people! Have highly recommended them to many friends and family members.

Holly F.Past Client

What to Expect

Here is how working with Mezher Law typically moves forward on a bankruptcy matter:

Step 1

Call before the repossession

Share the vehicle, the lender, and the timeline. We will identify whether Chapter 13 or Chapter 7 can stop the repossession and keep or surrender the car.

Step 2

We prepare the petition

You provide documents. We prepare the filing and, when you need to catch up on the loan, a Chapter 13 plan, then meet with you to review and sign.

Step 3

File and follow through

The case is filed in federal court. The automatic stay can halt the repossession while we stay with the matter through discharge.

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