It is better to file Chapter 11, 12, or 13 bankruptcy before your car is taken away.

Once you file they cannot repossess your car. It may be possible to get the car back even after it has been repossessed but it is much better to avoid the hassle and save money on your attorneys fees by filing before your car is repossessed.

A major benefit of Chapters 11, 12, and 13 is that you can cram down your car loan and most other secured creditors. In a cram down you almost always pay the creditor only the value of the collateral. This is great when you are upside down on a car. What actually happens is that the rest of the balance on the loan becomes unsecured and might only be paid pennies on the dollar, whatever its share of the money left over for the unsecured creditors. A cram down is most common for auto loans but can also be used for any secured debt where the collateral depreciates such as furniture.

Note that the new bankruptcy law purports to limit cramdowns by not allowing it when a vehcile was acquired within 910 days of filing and 12 months for other goods. The appellate courts have yet to rule definitively that this is in fact the correct interpretation of the new law as it was poorly drafted. Exceptions that some judges are following have been carved out when the use of the vehicle was intended for a person other than the buyer and for business use. Furthermore, market forces including a surplus of cars make it very likely that there will still be some form of cram down in some cases. I refuse to accept that the cram down is entirely gone. I like to fight for my clients right to pay only what they are supposed to pay.

Chapters 11, 12, and 13 allow you to pay for your car over time. Unless all creditors are paid in full the minimum term of the Chapter 12 or 13 reorganization is 36 months. During this time you must pay any excess income to the case trustee, that is income left after your budgeted living expenses are deducted. Most of the time these payments are quite manageable for those who are disciplined.

I understand that most people who are facing repossession have little money to pay me for a bankruptcy up front. In many cases I will file Chapter 13 with little money down if you qualify. In some cases you may even qualify to pay the filing fee in installments to the court. Contact me at (281) 999-9025 or click hereto schedule for a free consultation now, especially if you are facing a foreclosure tell us right away!

Please note that if you have had one or more bankruptcy cases pending within the past one year you may only have a 30 day stay or no stay initially, but I can file a motion to extend the automatic stay througout the case. Even if you have a limited or no stay initially there is a good argument that they still have to give a repossessed car back since you are entitled to possession unless ordered otherwise by the court.

If you want to be considered for filing the same day as your appointment, it is important that you finish your credit counseling including the final telephone component at least the day before your appointment. Click here to make an appointment. Additionally, you should also have completed the online intake form fully including the gross income figures for the last 6 months before the current month. Emergency filings have risks and should not be undertaken lightly. It is important that we have as much information as possible available before we file.

“At the end of the seventh year you are to cancel the debts of those who owe you money.”
Deuteronomy 15:1

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“Honest people are routinely taken advantage
of by powerful banks and finance companies
who know the rules. My goal is to level the
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Alex Wathen

Office: 13280 Northwest Freeway, Suite F352, Houston, TX 77040 (281) 999-9025

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

Licensed to practice law in Texas, the United States District Court for the Southern District of Texas, Western District of Texas, Eastern District of Texas, Northern District of Texas, the United States Courts of Appeals for the First, Third, Fourth, Fifth, Sixth, Seventh, Eighth, Ninth, Tenth, and Eleventh Circuits, as well as the United States Supreme Court. This site is neither sponsored, endorsed or approved by the law firm of Kubosh & Associates. Alex Wathen is solely responsible for its contents. This site provides only general information and is not a substitute for a face to face consultation with a bankruptcy attorney such as Alex Wathen. Neither is there ever an attorney client relationship created by the use of this site including the submission of any bankruptcy questions or other information. For more information contact Alex Wathen, 13280 Northwest Freeway, Suite F352, Houston, TX 77040, (281) 999-9025