There is probably nothing more devastating than having your car, truck, motorcycle, or vehicle repossessed because you failed to repay your debts.  Without any transportation you may end up missing work and your children may also miss school. For most people, missing a day of work is enough to cost them their jobs.

An experienced lawyer can help you file for bankruptcy to stop repossession if you are falling behind on payments for a car, truck, motorcycle or RV.  Filing for bankruptcy can stop the Repo man and stop repossession.

Chapter 7 vs Chapter 13 Bankruptcy

A Chapter 7 bankruptcy may allow you to discharge any remaining loan deficiency if you want to give up your vehicle. If the lender cannot get the entire amount you owe after auctioning the car you were forced to give up, you can discharge the remaining loan deficiency under a Chapter 7 bankruptcy.

Under a Chapter 13 bankruptcy, you can stop repossession and be able to surrender a vehicle or property that you no longer want or can no longer afford.  You may also choose to keep the vehicle and continue making payments.

Why people fail to make vehicle payments

Personal financial emergencies or crisis cannot be predicted and when they happen, they may force you to fall 2 or even 3 payments behind.  When that happens, the repo man will come and take your vehicle. Most people fail to make payments when they lose their jobs or source of income.

The problem is that when such problems strike, lenders are not usually willing to give you a break. Their representatives often avoid listening to your problems altogether because the reality is that lenders just don’t care about you. They only care about the profits they make.

In fact, some lenders do not hesitate sending the repo man to take the vehicle the very day you miss payment.  In Texas, every licensed driver in your household can keep one of their cars if you file for bankruptcy.

Repossession

However, according to Tommy Holmes – Real Estate Lawyer, repo men cannot use force or violence to repossess the vehicle. In Texas, a creditor may repossess personal property (not land) without filing a lawsuit or obtaining a court order, as long as the creditor can do this without “breaching the peace”. –Holmes Law, PLLC

A lender might also ask the court to lift the automatic stay if you already filed for a Chapter 7 bankruptcy.  Once the lender files a “motion for relief from automatic stay”, you have to respond to it two weeks after it was filed.  The judge can deny the lender’s motion if you can show that it was procedurally flawed or the lender made a mistake.

The judge may allow the hearing to continue even if the motion was accurate. This is meant to give you and the lender time to negotiate and reach an agreement.  If you are not negotiating with the lender or not attempting to cure your default, the judge may allow the lender to repossess your vehicle by lifting the automatic stay. Contact an attorney if you need help with this issue.