Vehicle repossession threats are , along with looming home foreclosure, one of the two most common reasons to file for bankruptcy in California.
As a consumer, you have specific legal rights which you may not be aware of. We can make you aware of those rights and help you enforce them legally.
Only the lender or his/her employee OR anyone registered with the Bureau of Security & Investigative Services can legally repossess a vehicle. And they can only repossess it in accordance with your contract with the lender. That contract may or may not have included a late payments grace period, after which alone can the vehicle be repossessed.
Plus, you have to be notified 48 hours of your vehicle being repossessed, though holidays and weekends give them more time to inform you.
Those who repossessed the car must inventory all possession in it and hold your personal belongings for up to 60 days, though they can also charge a storage fee that must be paid before you can get your possessions back.
You can call the auto lender and try to get a loan reinstatement, which will include paying to get current on the loan plus fees. You have up to 15 days to do this before the car can legally be sold at auction. You can also try to pay the full amount still owed on the loan to "redeem" the loan and get your vehicle back - and own it.
If you take no action, the lender may sell the vehicle and then send you a bill for the difference (if any) between the sale price and what you owed on the vehicle (plus fees). Normally, auction prices are quite low, so that often leaves a big bill for you to pay.
However, by filing bankruptcy, you may be able to save your vehicle or get out of paying the lender money for the vehicle after it's been repossessed.
Chapter 7 bankruptcy could cancel any money you still owe on the vehicle after it has been repossessed and sold at auction. Chapter 13, if filed within a couple weeks after repossession, could get you your vehicle back and up to 5 years to catch up on payments. Plus, you may even get a reduction of the amount owed down to current fair market value and a reduction in the interest rate.
At San Diego Bankruptcy Attorney, we can help you find a way to better your situation despite a vehicle repossession having taken place OR file bankruptcy for you in order to prevent a repossession via an automatic stay.
