Repossessions Attorney in DeSoto, Texas

When you’re going through financial adversity, filing for bankruptcy is an option to help you achieve debt relief. Depending on the bankruptcy chapter you are filing for, you may be wondering whether your motor vehicle is safe from repossession or if you can recover your car back after losing it to repossession.  

Attorney Gwendolyn E. Hunt is committed to offering knowledgeable legal counsel and reliable advocacy to clients in bankruptcy and vehicle repossession-related matters. As your legal counsel, she can evaluate your unique financial situation and enlighten you about your possible bankruptcy options. In addition, Attorney Gwendolyn E. Hunt will determine the ideal bankruptcy chapter for you to help stop the car repossession or outline a strategy to help you get your car back. 

Hunt Law Firm is proud to serve clients across DeSoto, Texas, and surrounding areas throughout Dallas and Fort Worth.

What is Repossession? 

Repossession can be described as the seizure of a property by a lender due to nonpayment of a loan or debt. For example, your leasing company or car lender may take back your vehicle if you missed payments on your car loan in order to pay off the loan. Depending on the terms of the auto loan, vehicle repossession can happen fast and without any prior warning. Fortunately, filing for Chapter 7 or Chapter 13 bankruptcy in Texas can help stop a car repossession. 

Repossessions & Chapter 7   

Chapter 7 bankruptcy is a debt relief option that allows individuals who have significant debts to eliminate most of their general unsecured debts and achieve a financial "clean slate." In a Chapter 7 case, the court-appointed trustee will gather and sell your non-exempt assets. The net proceeds from the sale will be used to pay some or all your creditors. 

Can Chapter 7 Stop a Car Repossession? 

When you file for Chapter 7 bankruptcy, an automatic stay order will go into effect immediately. The automatic stay order will prevent the creditor from collecting any debts or repossessing your property. Thus, filing for Chapter 7 bankruptcy will stop a car repossession before it happens. For the car lender to repossess your vehicle, they must first seek permission from the Texas bankruptcy court. 

Can You Get Your Car Back? 

If the car has already been repossessed before filing your bankruptcy petition, you may be eligible to "redeem" or purchase the vehicle back in a Chapter 7 case for its fair market value. This will require filing a motion with the Texas court. Also, you must pay the current value of the car fully, in a single payment. 

Repossessions & Chapter 13 

Chapter 13 bankruptcy is available to individuals who earn a decent income but are overburdened with debts. This requires proposing a repayment plan to the creditor to pay back your debts using your future earnings. If your Chapter 13 repayment plan is approved, you may be able to pay off some or all of your debts over an extended period—usually between 3 and 5 years—using your potential income. 

Can Chapter 13 Stop a Car Repossession? 

Similar to Chapter 7 bankruptcy, an automatic stay order will go into effect once you file your Chapter 13 bankruptcy petition. If the car lender is yet to repossess your car, the automatic stay order will prevent them from repossessing the vehicle until your Chapter 13 repayment plan is approved. Once you make provision for all missed car loan payments in your repayment plan, the lender will be unable to repossess your car during or after your bankruptcy. 

Can You Get Your Car Back? 

If the car lender already repossessed your motor vehicle prior to filing your Chapter 13 case, you may still be able to recover the car. This requires providing for the arrearage payments in your Chapter 13 repayment plan. Also, must be able to keep up with the monthly payments going forward.  

If you are trying to stop a car repossession or if your vehicle has already been repossessed and you're considering filing for bankruptcy, you need to reach out to a knowledgeable bankruptcy attorney immediately. Your legal counsel can educate you about the different bankruptcy options available to you and help you navigate crucial decisions. 

Receive Guidance from a Trusted Attorney 

Filing for bankruptcy in Texas can involve a lot of complex procedures. Knowing what to expect with your motor vehicle, car loan, and other assets can help you make informed decisions when filing your bankruptcy petition. An experienced bankruptcy attorney can explore your possible legal options and determine the best way to protect your car and assets from repossession. 

Attorney Gwendolyn E. Hunt has devoted her career to providing experienced legal services and guiding individuals through the complexities of bankruptcy. As your legal counsel, she can enlighten you about the benefits and requirements of each bankruptcy chapter and determine whether they can protect your vehicle from repossession. 

Even if your car is already repossessed, she will help negotiate a feasible payment plan with your creditor and work intelligently to help get your car back. Attorney Gwendolyn E. Hunt will fight compassionately to protect your rights and safeguard your assets.