• 21
  • December
    2011

Cars are essential to most families in Chicago. Whether they are used to get to work, buy groceries, or transport loved ones to activities, cars are a necessity.

When you are struggling to make ends meet and juggling bills to make everything work, repossession of a vehicle is the last thing you need. Yet if you are like many households in and around Chicago, repossession of your car may be just around the corner.

For many, the very threat of repossession is frightening enough for them to look for other alternatives to manage their debt. If this is you, bankruptcy could be your best option.

Whether pursuing a Chapter 13 or Chapter 7 bankruptcy, if you have been threatened with repossession, bankruptcy will offer a number of solutions. As soon as your bankruptcy has been filed, the automatic stay requires creditors to stop all collection activities, including repossession. Chicago car repossession attorneys will work to help you find a way to get back on top of your auto payments.

What If My Car Has Already Been Repossessed?

Most auto loans use cars as collateral for the loan. If you fail to make your payment your car, the lender may threaten to repossess the vehicle. Exactly when the car may be repossessed is up to the lender. The auto loan contract governs the length of time you must be in default before your car can be repossessed.

But what if your car has already been taken? What you may not know is that bankruptcy can also be used to get your car back from repossession. In Illinois, you have 21 days from the day your car has been repossessed before the lender can sell your car. If you file a Chapter 13 bankruptcy in this time, you can use the bankruptcy to get caught up on your payments while keeping your car.

Source: www.ftc.gov, "Vehicle Repossession: Understanding the Rules of the Road,"