Question: I need to fight a car repo. We have two cars but I think one of them will be repossessed very soon. The bank said that they are looking for the car. Now I'm scared and I'm afraid to park it on the street or in my driveway. I might just keep it at my friend's house to be safe because he has a garage.
I'm behind on the car payments because I'm making less money. I got a new job and I don't have the same number of clients. My wife has a part-time job and she stays home with our kids. I don't want the repo to take place when my wife is out with the kids. That happened to a friend of ours and it was a big hassle.
I probably spent too much on the car but I always wanted a BMW SUV. I didn't think the car payments would be that much and when we picked it up at the dealer I was surprised. I guess I should have figured that out before I signed the financing terms.
Now that I am behind 6 payments, I think I have to file bankruptcy. If I file bankruptcy I want to keep the car. I really like the SUV and I even have my name on the tag.
I think I can get a part-time job to pay for the car. But I really don't want to lose it. Can going bankrupt help me save my car?
D.F. in Alpharetta
Answer: We are getting a lot of questions regarding bankruptcy and repossession. Filing bankruptcy helps prevent car repossession. Once you file, the repo has to stop.
In your case, a chapter 13 will allow you to put any payments that are outstanding into the bankruptcy. You can put the 6 payments you are behind into a chapter 13 and then pay them off through a plan over number years; many times it's over 5 years.
During the pendency of the bankruptcy, however, you must make your regular monthly car payment. But the payments that are now outstanding can be included in the plan.
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