Michigan Bankruptcy Lawyers in Flint

Bankruptcy Help to Stop Car Repossession

If you’re facing car repossession and need to keep your vehicle, bankruptcy lawyer John L. Hicks can help. Filing for bankruptcy will stop car repossession and allow you to resume affordable car payments to keep your vehicle. If your car was recently repossessed, bankruptcy attorney John Hicks can force the lender to return the vehicle. With just a 5-minute phone call, John can answer your questions and help you figure out how to save your vehicle, while eliminating other debts in bankruptcy.


Avoid Car Repossession

John can help you keep your car by forcing the creditor to take payments again in a Chapter 13 Plan. To learn more and get clear answers to your questions and concerns about filing for bankruptcy, call bankruptcy lawyer John Hicks today at (810) 232-2223.


Your Options When Filing for Chapter 7 Bankruptcy

  1. Reaffirming your car loan – You sign a new contract with your car creditor, most often under the same terms as your original contract.
  2. Redeeming your vehicle – For vehicles that qualify (normally less than 100,000 miles and no more than 7 years old), you obtain a new car loan with the help of your bankruptcy lawyer.
    1. The new car loan will be only for the value of your vehicle, not for the original contract. The difference will be wiped out through the bankruptcy.
    2. In most cases, your loan balance is lower, but the interest rate might be higher.
    3. Redemption is often a good alternative to reaffirming your old car loan.
  3. Surrendering your vehicle – You return the vehicle to the car creditor or make arrangements for them to pick it up.
    1. If the car is nearly paid for, needs repairs and does not have a high resale value, sometimes the car creditor might not want the car returned. In these cases, the city might tow the car from a public street, or you could dispose of it in other ways.
    2. Selling the vehicle will be difficult in these cases because the lien of the car creditor is still on the title of the car.
    3. When you surrender your vehicle in bankruptcy, whether the car creditor takes it back or not, you are not liable for the vehicle loan anymore since the debt is being wiped out through the bankruptcy case.

Your Options When Filing for Chapter 13 Bankruptcy

  1. Keeping your vehicle – You will pay the loan balance over the length of the Chapter 13 plan with the court established interest rates.
    1. In most cases, this lowers the payment significantly. If your vehicle was purchased more than 2.5 years prior to filing of your bankruptcy case, you have to pay only the value of the car, similar to redemption in a Chapter 7 Bankruptcy.
    2. The difference between value and loan balance is treated as unsecured and does not get paid in most cases.
    3. At the end of your Chapter 13 Bankruptcy case, it is wiped out through the discharge, together with your other debt. This is called “cram down” because you are cramming down your debt to the value of your vehicle.

Find Debt Relief with John L. Hicks & Associates

Resolve your debts and get back on your feet financially with John L. Hicks & Associates. Bankruptcy lawyer John Hicks is always upfront with his rates, so there are no hidden charges or fees. With John on your side, you can get the debt relief you need.


Call an Experienced Michigan Bankruptcy Lawyer to Deal with Your Car Repossession

If you need help with car repossession and want someone you trust to walk you through your options, call our office today 810-232-2223, or fill out the contact form. In the first 5 minutes of our conversation, you’ll gain a good understanding of your options and be directed to the best route for your situation.