Vehicle repossession

Vehicle repossessions occur when the lien holder attempts to take back the vehicle or collateral due to missed payments. You may also choose to voluntarily turn in your vehicle if you can no longer maintain the payments. This is referred to as a "Voluntary Repossession."

If your vehicle has been repossessed or if it is imminent or you can no longer afford the monthly payments, our lawyers have several options to help you.

Keep Your Vehicle

If you wish to maintain ownership on a vehicle loan but are behind on payments, our attorneys can set up repayment terms. Through the Chapter 13 program, our lawyers can stop the car repossession before it happens or get the vehicle back if it has already been repossessed - as long as it has not been sold at auction.

Reduce Your Payments

We can also alter your vehicle payments if needed to work within your budget. Your attorney can lower your vehicle loan repayment terms (link to Michigan Repo Laws and Reducing Payments). through the filing of a Chapter 13 Reorganization. This program will modify your vehicle loan and spread the payments over the course of the program (36 - 60 months) at a reasonable interest rate with no continued late payments by modifying the contract to reduce the interest rate or extend the terms of the loan.

If you have owned the vehicle for more than 2.5 years, we can actually alter the value of the vehicle for the duration of your loan contract. This will lower the vehicle’s value to current market value versus the balance owed on the contract and therefore lower your monthly payment and provide you with more favorable payment terms.

Eliminate or Reduce a Loan Deficiency Resulting from Vehicle Sale

If you simply cannot afford your car and wish to “voluntarily surrender” it back to the creditor or if the vehicle has been repossessed and already sold at auction, we can help eliminate or reduce the resulting deficiency through a Chapter 7 or Chapter 13 bankruptcy. When the lender sells the car at auction, the balance on the contract or "loan deficiency" becomes unsecured debt and can be eliminated through the Chapter 7 Fresh Start or potentially reduced through the filing of a Chapter 13 Reorganization.

We offer free in-office and phone consultations to review your personal circumstances, analyze your situation and advise you on the best course of action. Please call us toll free at 888-868-6005 or click here to schedule a consultation right now.