In most cases, filing a Chapter 13 bankruptcy case will allow you to recover possession of a vehicle that has been repossessed. Because the buyer retains a right to redeem the vehicle after repossession, he/she still has an ownership interest in it. Therefore the courts have held that it is part of the bankruptcy estate and must be returned to the buyer.

Once the vehicle is resold by the lender, however, it is almost certainly too late. If your vehicle has been repossessed, you must act quickly. Contact an experienced bankruptcy attorney. Make sure that he/she is prepared to file a case quickly. A good bankruptcy attorney knows that time is of the essence in this situation, and will get a case filed right away.

Of course, recovering possession of the vehicle is only the first step. You must propose a feasible plan to pay the debt. Your attorney should fully evaluate your finances and develop a plan that you can live with. In some cases, you will only have to pay back the value of the vehicle rather than the full debt. In almost all cases, the interest rate will be significantly reduced.

So, if your vehicle has been repossessed, don’t give up. Get advice from a highly qualified bankruptcy attorney right away.