A Chapter 13 bankruptcy can stop repossession and prevent your vehicle (car, truck or boat) from being taken if the petition is filed before the property has been seized. Once the property has been repossessed, Chapter 13 bankruptcy cannot get the property back. In the state of Florida, once the vehicle is taken by the creditor (and the creditor has legal possession of the vehicle), it is theirs and the Bankruptcy Court cannot force them to turn it over.
To keep your car, the key is to file Chapter 13 bankruptcy before to the vehicle is taken. In a Chapter 13, an "automatic stay" is formed to protect a person's assets. Your repossession lawyer can work with you to ensure the vehicle (or property being protected) is re-amortized over a 3, 4 or 5 year period. If the property is a vehicle and it was purchased more than 2 1/2 years prior to filing the chapter 13 or refinanced or a title loan was taken out after it was purchased, the amount owed on the vehicle can be negotiated down to a current value. This means that the person filing Chapter 13 will only pay the value of the vehicle and not what is owed.
A car was purchased 2 1/2 years ago and the person owes $30,000.00. The value according to the NADA (Blue Book) is $16,000.00. The vehicle may qualify to be paid at the rate of 5% to 6% percent interest on the value of $16,000.00 over 3, 4 or 5 years.