You can halt repossession and stop your vehicle from being taken if a petition is filed before the seizing of the property by filing for Chapter 13 bankruptcy. If the property has already been repossessed, a Chapter 13 bankruptcy will not help get the property back. Once the vehicle has been taken by the creditor, in Florida, the Bankruptcy court cannot force them to give it back.
The key to keeping your car is filing for chapter 13 bankruptcy before your vehicle is repossessed. An “automatic stay” is created to protect one’s assets with a chapter 13. You can work with your repossession attorney to make sure the vehicle is re-amortized during a 3, 4 or 5 year time. If the asset is a vehicle and was bought more than 2.5 years before filing the chapter 13 or if it was refinanced or a title loan happened after purchase, the debt on the vehicle can be talked down to the current value. This allows the person to pay just the current value of the vehicle, not what they owe.
A car was purchased 2 1/2 years ago and the person owes $35,000.00. The value according to the NADA (Blue Book) is $14,000.00. The vehicle may qualify to be paid at the rate of 5% to 6% percent interest on the value of $14,000.00 over 3, 4 or 5 years.