An automobile that is behind on payments is subject to repossession and sale. Even after your car has been resold, you may still be responsible for car payments, even though you don't own the car.

A bankruptcy can help you keep a vehicle that is behind in payments and, in some circumstances, can help you get a vehicle back from a creditor who has already repossessed the vehicle.

Under a Chapter 13 bankruptcy, the borrower contines to pay off their debts over a period of years. The back payments for your car loan would be included in the repayment plan. In a Chapter 7 bankruptcy, you can reaffirm your debt and contine to make payments on the loan while maintaining the car.

In addition to preventing the repossession and sale of a vehicle, a Chapter 13 bankruptcy can help to lower the monthly payments of an automobile loan. For example, a car valued at $5,000 with monthly payment of $350 could possibly be restructured to give you a much lower and affordable payment.

If you need options with a repossession, give us a call at 816-842-6200 to speak with an attorney. Or you can email us and schedule your free consultation.

Jason C. Amerine
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President and Owner, Castle Law Office of Kansas City