If you are a New Jersey resident who has received warnings about possible repossession of your car due to nonpayment, you may be wondering what options are available to you to help you keep your vehicle. At Goldman & Beslow, we have seen many cases involving vehicle repossession. Here is some idea of the options available to you.
If you have fallen behind on car loan payments and had your car repossessed as a result, you may be able to get it back, but only if you act quickly. Filing an emergency bankruptcy within 10 days of the repossession may allow you to get your car back. Even if the initial 10-day period has already passed, filing for bankruptcy will discharge or reorganize your debts, although it will not return your car to you if the window of opportunity has closed.
There are two types of bankruptcy you can file, depending on eligibility requirements and other considerations. Chapter 13 reorganizes your debts to make them easier to pay off rather than requiring the sale of your assets to satisfy the debt. If you file Chapter 13, you will not lose your car or any other possessions. Filing Chapter 7 may cause you to lose some possessions, but certain assets may be exempt from liquidation. If the car is your primary vehicle, it may not be necessary for you to forfeit it.
Regardless of which chapter you file, bankruptcy puts an immediate stop to the vehicle repossession process. More information about asset forfeiture is available on our website.