Did you take out an auto loan to buy your car? If you did, chances are you signed an agreement that says your lender can repossess your vehicle without getting a court order or warning you in advance if you fail to make your monthly car payments.
However, you do have to be notified if your lender decides to sell your car after repossessing it. You must be informed if your car is going to be resold at an auction so that you have the option to bid on it. If your lender decides to sell your car privately, you have to be given the opportunity to buy it by paying off your loan balance and any costs related to the repossession.
Of course, the best scenario is to avoid repossession altogether. If keeping up on your car payments isn’t a possibility, then you might want to consider filing for bankruptcy protection in order to protect your car from repossession.
By filing for bankruptcy, an automatic stay is put into place stopping your creditors from taking collection actions against you, including repossessing your vehicle. Bankruptcy can’t always block repossession permanently, but it can buy you time to get current on your payments, at the very least.
For example, by filing for Chapter 13 bankruptcy, a form of debt reorganization, it is possible to reduce your car payments to a manageable amount and then allow you to keep your car. Our firm has personally helped Wisconsin residents cut their car payments in half through Chapter 13.
It may even be possible to get your vehicle back after it has been repossessed.
If you are facing auto repossession on top of other debt problems, bankruptcy might be a good option for you. Talk to one of our friendly and approachable bankruptcy lawyers for more information.
