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How to Stop Auto Repossession with Bankruptcy in New Jersey

cars in parking lotBankruptcy Can Stop Auto Repossession

Banks and auto dealerships will not hesitate to repossess your car if they think that you can no longer afford it. Some lenders will initiate repossession after you miss just one car payment.

Filing for bankruptcy protection can prevent repossession and give you an opportunity to catch up on what you owe. It may even be possible to refinance your auto loan through a Chapter 13 filing. The lawyers of Scura, Wigfield, Heyer & Stevens, LLP, can explain your rights and take action to save your car from being repossessed.

We handle bankruptcies in northern and eastern New Jersey, with offices in Wayne, Hoboken and Elizabeth. Contact us today for a free consultation about bankruptcy and auto repossession.

Protect Your Car: New Jersey Vehicle Repossession Lawyers

On the day that your bankruptcy petition is filed, an automatic stay is invoked that prevents creditors from taking further actions, including repossession. This gives you instant protection and buys you time to determine if you want to keep your vehicle.

  • In Chapter 7 bankruptcy, you may be able to eliminate credit card debts and other debts, freeing up money for your car payment. You must pay off any arrears and keep up with the payments in order to keep the car.
  • In Chapter 13 bankruptcy, you can pay the arrears over time as part of your overall debt repayment plan.
  • Another benefit of Chapter 13 is the "cramdown." If you have owned the car for at least 910 days (2 1/2 years) and you owe more than the car is worth, this provision of the bankruptcy law allows you to restructure your auto loan for the current market value of the vehicle, reducing the monthly amount or the number of payments.

It may not make sense to file for bankruptcy just to keep your car, especially if you are stuck with a huge car payment you can't afford. However, bankruptcy eliminates or restructures other debts and also provides relief from foreclosure, wage garnishment and creditor harassment. Our knowledgeable attorneys will look at your entire financial picture and help you decide what is in your best interests.

Don't Let Them Repossess Your Car If You Have Options

To prevent repossession — or to possibly get your repossessed vehicle back — call us at (973) 870-0434 or contact us online today for a free initial consultation. The law firm of Scura, Wigfield, Heyer & Stevens, LLP, welcomes clients to our offices in Passaic County, Hudson County, Union County and surrounding counties throughout New Jersey.

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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.

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