Chapter 13 car repossession in Oregon

Chapter 13 Car Repossession in Oregon

Drive towards financial freedom and get your car back 

Car repossession can be a devastating experience for individuals who rely on their vehicles for transportation. Fortunately, filing for Chapter 13 bankruptcy can provide relief and prevent repossession in certain circumstances. With this option, you may be able to keep your car and make affordable payments. Alternatively, you may be able to surrender your vehicle to the lender and avoid the burden of car payments. 

Learn more about Chapter 13 bankruptcy car repossession, including benefits, legal requirements, and potential risks. If you’re considering filing for Chapter 13 bankruptcy to address car repossession issues in Oregon, don’t hesitate to contact Michael D. O’Brien & Associates, P.C. 

Our skilled attorneys can provide you with personalized legal guidance and help you navigate the bankruptcy process. Call us today to schedule a consultation and learn more about how we can assist you.


Why Work with a Chapter 13 Car Repossession Attorney in Oregon?

Working with a Chapter 13 car repossession attorney in Oregon can be beneficial for several reasons. First, a competent attorney can help you understand your legal rights and options in a Chapter 13 bankruptcy case and the potential consequences of different actions. This knowledge can be invaluable in making informed decisions about how to proceed.

Furthermore, a Chapter 13 car repossession lawyer can help you navigate the complex legal process, ensuring your case is filed correctly, and all necessary documentation is submitted on time. They can also work with creditors to negotiate repayment plans that fit your budget and help you keep your vehicle.

Finally, a Chapter 13 car repossession attorney can provide you with the emotional support and guidance you need during this stressful time. They can answer your questions, address your concerns, and provide peace of mind knowing that your case is in good hands.

Working with a Chapter 13 car repossession lawyer in Oregon can help you protect your rights, keep your vehicle, and achieve a brighter financial future.


What is Chapter 13 Bankruptcy?

Chapter 13 bankruptcy is similar to Chapter 7 in that most of the paperwork, including the Petition, Schedules, and Statement of Financial Affairs, is the same. However, Chapter 13 is typically only considered if Chapter 7 is not a good fit for your situation. The centerpiece of a Chapter 13 case is the Plan, which outlines how much you need to pay to obtain a discharge while keeping all your assets.

This payment is usually between 5% and 50%, and the Plan must comply with Chapter 13 rules and show that you can afford to make payments, but not more. You need to provide detailed information about your income, debts, vehicle loans, taxes, and other expenses.

It is essential to have a lawyer’s help in creating a feasible payment plan and budget that adheres to the Chapter 13 rules. While the payment process can be complicated, it is also essential to note that you will not lose any assets in a Chapter 13 bankruptcy.


Understanding Car Repossession in Chapter 13

As per the decision of the 7th Circuit Court of Appeals, if a vehicle is seized before the filing of Chapter 13 bankruptcy, the creditor is obligated to return the vehicle to the debtor after the case is filed and a request for its return is made.

Before this ruling, if a vehicle was seized before filing for Chapter 13 bankruptcy, the debtor typically had to provide “adequate protection” to the creditor before the vehicle could be returned.

Having sufficient protection necessitates providing evidence of possessing comprehensive auto insurance coverage. In some cases, the debtor may also need to demonstrate their ability to make Chapter 13 payments, which could involve more than just negotiating and may result in prolonged legal disputes or court proceedings.


In What Ways Does Chapter 13 Aid in Retaining Your Vehicle?

Chapter 13 bankruptcy provides benefits to help with property, including vehicles, through the following:

  • Repossession can be stopped through the “automatic stay” order. 
  • Surrendering a car is an option if you cannot afford the payments or if it requires costly repairs.
  • Falling behind on car payments can be remedied by catching up through the repayment plan and staying current.
  • Reducing the loan amount through “cram down” can be possible if the car’s value is less than the loan amount, but local laws may vary.


Expenses Related to Car Repossession Under Chapter 13

The ruling does not discuss the usual obligation of paying for the costs associated with repossessing the vehicle, including actual repossession costs, lot fees, and storage fees. These fees can range from $200 to $1000. 

The decision suggests that these costs should not prevent the return of the vehicle but should be added to the creditor’s claim. However, the creditor may still bring up a lack of adequate protection and file for relief from bankruptcy protections. The debtor should keep the vehicle to continue making timely Chapter 13 payments and keep their job.


What Do I Need to Do on Car Repossession During Chapter 13 Bankruptcy?

In Chapter 13 bankruptcy, retaining your assets is usually allowed, but it’s not always the case. Demonstrating that you can afford to pay the amount owed to your creditors in a repayment plan, which can be costly, is necessary.

Any excess equity in your motor vehicle is your responsibility to pay for. You need to pay the value of any property not considered exempt. If you have a significant amount of nonexempt equity in your car or other property, it could increase your plan payment. Your repayment plan must pay your unsecured creditors an amount equivalent to your nonexempt property.

In Chapter 13 bankruptcy, your repayment plan must demonstrate that you’re utilizing all of your disposable income, which is your income minus necessary living expenses, to pay off your unsecured debts. 

It’s not unusual for a court to determine that a significant luxury car payment isn’t reasonable or that you only need one car to go to work. You cannot use the car payment while computing your disposable income in both situations. Instead, you may only be able to claim an expense consistent with a lower-priced car. 


Some FAQs About Chapter 13 Car Repossession

  1. What will be the outcome if you pay off your car during Chapter 13?

If you complete your Chapter 13 plan payments, you will have full car ownership without any liens. This is a common occurrence, especially if the remaining time on your car loan is less than five years.


  1. Is it possible to regain possession of my repossessed vehicle by filing for Chapter 13 bankruptcy?

It’s possible to keep your car in Chapter 13 if it’s essential for your household, such as using it for work, and you can afford the current and past payments through your payment plan.


  1. Is it permissible to purchase a car while my Chapter 13 bankruptcy case is ongoing?

It is feasible to secure financing for a vehicle while making payments under a Chapter 13 plan, but you must first obtain approval from the bankruptcy court.


Call our Chapter 13 Car Repossession Lawyer Now!

Are you struggling to keep up with your car payments? Are you worried about your car being repossessed? Don’t let the stress of Chapter 13 car repossession weigh you down any longer. We understand how overwhelming this process can be here at Michael D. O’Brien & Associates, P.C. We are here to help.


Our team of attorneys can guide you through the Chapter 13 bankruptcy process, providing you with the support and advice you need to make the best decisions for your financial future. We’ll work closely with you to create a repayment plan that fits your budget and helps you keep your car. And if repossession has already occurred, we can help you recover your vehicle.

Don’t let car repossession ruin your life. Contact Michael D. O’Brien & Associates, P.C. today to schedule a free consultation and learn how we can help you get back on track. With our expertise and personalized approach, you can overcome your financial challenges and start a new chapter in your life.

In addition to our expertise in Chapter 13 car repossession cases, Michael D. O’Brien & Associates, P.C. offers legal services in Chapter 7 and Chapter 11 bankruptcies. Our team has extensive experience representing individuals and businesses in bankruptcy proceedings, and we’re committed to providing each of our clients with personalized and effective legal solutions.

Whether you’re struggling with overwhelming debt or facing financial challenges as a business owner, we can help. We’ll work closely with you to understand your unique situation, identify your goals, and develop a strategy that meets your needs. With our guidance and support, you can navigate the complexities of bankruptcy law with confidence and peace of mind.

Don’t let financial challenges hold you back. Contact Michael D. O’Brien & Associates, P.C. today to know more about our Chapter 7 and Chapter 11 bankruptcy services and schedule a consultation. We’re here to help you overcome financial obstacles and achieve a brighter future.


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