Losing your Vehicle to a lender can hurt. The good news is that even if your car has been repossessed, there is a chance you might be able to get it back through Bankruptcy. However, timing is very important.

The Process

If a lender is to repossess your car, they have to do it legally. In California, this means that they are required to give you a series of notices. The first notice is called a Notice of Seizure. In general, they must get this to you within 48 hours after they seize your vehicle. It will include the contact information of the car’s owner and the Repossession Agency. The second notice entails the repossession agency telling you they intend to sell your vehicle 15 days before they do. After receiving this, you have the legal right to request a 10 day extension. This will give you more time to file bankruptcy and get your car back.

If you repay all of the overdue payments, your lender is legally required to reinstate your loan. However, they are only required to do so twice over the life of the loan or once in a 12 month period. If you aren’t able to pay back your overdue payments, filing a Chapter 13 bankruptcy may help, but you will have to move quickly because once the car is sold, there’s no getting it back.

If you file Chapter 7 bankruptcy, you’ll still have a chance to get your vehicle back, but you’ll still be responsible for any past due payments.

If you file Chapter 13 bankruptcy before the car is sold, the court will put an automatic stay on the sale of your vehicle. The lender won’t be able to sell the car until that stay is lifted. Shortly after filing your Chapter 13 bankruptcy, the repossession agency will most likely return the vehicle. After filing, you’ll have to make sure to stay on track with your Chapter 13 bankruptcy plan to avoid further problems with your lender.

If your vehicle has been repossessed, act quickly by calling your local Yuba City bankruptcy attorney at (530) 797-4402 for a chance to get it back.

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