Michigan Car Repossession Law and Reducing Payments

If you have experienced or are facing vehicle repossession in Michigan, we can help.

Michigan Car Repossession Law

If you are in default on your payments, your lender can proceed with car repossession. When they attempt to retrieve the vehicle, there are aspects of the law to protect you:

While the repossession company may trespass your property to retrieve the vehicle, they cannot legally “break and enter” a closed structure. For example, if they see the car in a closed garage through a window, they cannot legally lift the garage door to repossess the vehicle.

In the process of recovering the car, they cannot “breach the peace.” This means that they cannot create a loud disturbance in their efforts repossess the vehicle.

Once the car has been repossessed, the lender has to abide by a 15 day redemption period. This allows you 15-day to redeem the vehicle before the lender can attempt to sell the car at auction.

Our lawyers can help you to redeem your vehicle. We can recover your vehicle up until the point that it is sold at auction and provide you with the legal protection and reasonable repayment terms through the use of Chapter 13 reorganization. This will not only protect your vehicle, but the plan can also create more favorable payment terms.

Reduce What You Owe Under a Chapter 13 Plan

We can reduce your monthly vehicle payments in the following ways:

If you have owned the vehicle for more than 910 days or 2 1/2 years, the attorney can actually reduce the amount owed on the vehicle. This reduces the secured claim on the vehicle to the present fair market value and converts the balance owed on the loan to unsecured debt. The benefit is that you may be eligible to discharge a portion, if not the majority, of the debt at the completion of the Chapter 13 plan.
If you have owned your vehicle less than 2 ½ years, we can reduce your payment by extending the payment terms and reducing your interest to a “reasonable rate.”

Consolidate and Reduce Other Bills

In addition to reducing your car payment, we can consolidate and reduce other debts that you may have. The Chapter 13 is a full debt consolidation plan that allows you to create a customized repayment plan based on your budget. Through the program we can:

Provide 0% interest repayment terms on unsecured debt
Consolidate and potentially reduce unsecured debts based on your budget and income
Remove a second mortgage or home equity loan
Provide you with legal protection not only for your vehicle, but for other creditor actions such as home foreclosure, tax levies, judgments and wage garnishments, etc.

Rebuild Your Credit

If you have missed vehicle payments, it has negatively affected your credit. Engaging the Chapter 13 program to recover your vehicle will not only provide legal protection and repayment terms for your vehicle loan, but the Chapter 13 plan will also help you to improve your credit over the course of the 36 – 60 month repayment plan. Throughout the course of the debt consolidation program, we will be:

Reducing your debt-to-income ratio by paying down straight principal debt on may of your bills
Restoring regular monthly payments to your creditors that will avoid “late” report on to the credit agencies

Experience is on Your Side

Facing car repossession can be overwhelming and frustrating. You want to get back on track with your payments, but your lender may not be so willing to help. This is where our experience counts. We can provide a full-service recovery plan – not only for your transportation, but for your overall budget and credit.

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 866-261-8282 or click here to schedule a consultation right now.