Can I Get My Car Back by Filing Chapter 13 Bankruptcy?

 Posted on September 28,2023 in Bankruptcy

 Filing for bankruptcy can be a daunting and complex process, with various chapters offering different solutions to financial challenges. For people struggling with overwhelming debts and the fear of losing their vehicle through a repossession, Chapter 13 bankruptcy might provide a potential solution. If your car has been taken away in the last ten days or you are concerned that it may be taken and you live in Texas, our lawyers can help you file for Chapter 13 so that you can get your car back. Here is how. 

Understanding Chapter 13 Bankruptcy

Chapter 13 Bankruptcy, also known as a wage earner’s plan, allows people with regular income to restructure their debts and create a manageable repayment plan. Unlike Chapter 7 bankruptcy, which involves liquidating assets, Chapter 13 focuses on debt reorganization and repayment over three to five years. 

Car Repossession and Chapter 13 Bankruptcy 

If your car has been repossessed or you fear it might be in the near future, Chapter 13 bankruptcy can help you regain possession and prevent further repossession attempts. When you file for Chapter 13, an automatic stay is immediately implemented, halting all collection efforts, including car repossession. 

The Automatic Stay

Essentially, the automatic stay is a powerful legal provision that stops creditors from taking any 

action against you or your property once you have filed for bankruptcy. This means that if your car has been repossessed prior to filing for Chapter 13, the automatic stay can potentially force the creditor to return the vehicle. However, certain conditions do apply. 

The Role of the Repayment Plan

To successfully retrieve your car through Chapter 13 bankruptcy, you must propose a feasible repayment plan that satisfies the court and your creditors. The repayment plan should outline how you plan on repaying your debts, including any outstanding car loan payments. You will need to make regular monthly payments to a bankruptcy trustee, who will be responsible for distributing the funds to your creditors, including the lender who financed your car loan. 

Contact a Fort Worth, TX Chapter 13 Bankruptcy Attorney

Filing for Chapter 13 Bankruptcy can provide a potential avenue for retrieving your car and preventing further repossession attempts. By taking advantage of the automatic stay and proposing a realistic repayment plan, you can work towards regaining control of your financial situation. For representation in filing Chapter 13, contact the skilled Parker County, TX lawyers with Acker Warren P.C.. Call 817-752-9033 for a free consultation.