Having your vehicle repossessed can be financially debilitating, making it nearly impossible to care for your family, and it could result in you losing your job. Falling so far behind in your debts that the lender repossesses your car can seem like a hopeless situation, but the law actually provides a few options for reclaiming your property. If you act quickly enough, a skilled attorney may be able to help you recover your vehicle and renegotiate more favorable terms on your behalf.

How a Chapter 13 Bankruptcy Can Recover Your Repossessed Vehicle

The Automatic Stay

Filing a bankruptcy petition trigger an automatic stay, which prohibits any creditors from pursuing any collection action outside of the court. In addition to stopping phone calls, letters, and lawsuits, the automatic stay also prevents lenders from repossessing property or selling it.

Reclaiming Your Vehicle

Once your petition has been filed, your attorney will notify all of your lenders, including the holder of your auto loan. In general, most financial institutions understand that they will be required to return the vehicle and will typically provide instructions for picking it up. However, if they refuse to cooperate, your lawyer will request a court order requiring the return of the vehicle while the bankruptcy proceeds.

Renegotiating Your Contract

In a Chapter 13 bankruptcy, you will be required to pay back your creditors over a period of three to five years. To improve your financial situation, the bank will often allow you to propose a plan with more favorable terms than your existing loan. For instance, your lawyer may be able to reduce your interest rate or extend the term of your loan to make monthly payments more manageable.

If you’re facing debts you cannot repay, the attorneys at Bueker Law Firm have the experience to help you get a second chance at your financial life. Because they focus so closely on bankruptcy and foreclosures, they provide individualized service informed by an in-depth understanding of the system, allowing them to help achieve the best results possible in any situation. To learn more and schedule your initial consultation at their Stuttgart, AR, office, visit their website or call (870) 673-1313 today.