Best Answer

It depends on the laws in the state where you live. You need to contact your lawyer.


I suggest you file Chapter 13 if you are unable to pay off the outstanding balance due to your lender. This is what happened to me with Ford Credit.

Call for a telephone interview with rep in Redemption Dept (15-20 minutes). Then, if the Redemption Dept agrees to allow you to pay past due balance, (but only at their descretion, considering your payment history) you will have up to 10 days to do so, before your vehicle is auctioned off. If you consult with atty and have other dept and financial problems you can file Ch. 13 and pay atty small fee each month, have vehicle returned to you within 3-4 days and I didn't have to pay Ford Credit a dime. Which after their rude comments and all the attitude and unprofessionalism and harrassing phone calls I received from this company I was thrilled!


Bankruptcy and repos do not always go hand in glove. You can declare bankruptcy but exclude your vehicle if it is below a certain scaled price...and I am referring to Chap 7 full Bankruptcy.

If you are in that kind of trouble, declare your Chapter 7 (Personal and the easiest in the court sys), include your vehicle in the declaration. All collection and repo activity must now stop, by court order.

You keep the car until the b-r judge decides if you can make payments in the future or not. But that should give you a 2-3 month chance to put some money aside to catch up.

If the judge decides you just don't cut the mustard, you take the bus really. You must agree to turn over the car in a friendly manner at a time and place certain. If the court lets you keep the vehicle you will have to make up back payments and the current payment...and that's that.

But if it's to be bankruptcy AND/OR repossession, file chapter 7 first. Good luck.


Repossession happens for only one reason: Negligence on the part of the Buyer, who allows his/her account to become delinquent and thus become in default of the contract. Instead of contacting the Lender and intelligently working together to develop a solution (all Lenders have solutions)the Buyer let's the clock tick down as if nothing is going to happen. Enter the Tow Truck! Opps! No the Buyer, who has been ducking and dodging the Lender, is all about calling and making demands fo which Buyer has no legal basis. READ YOUR CONTRACT ---BEFORE YOU SIGN IT! If you can't afford the payments, DON'T SIGN IT! If you sign and then run into a financial problem, CALL THE LENDER AND WORK WITH THEM! Since minors cannot legally sign a binding contract, it is always the case that Buyers are ADULTS. Would only that they ACT like adults rather than like spoiled brats or blithering idiots, then they would more oft' than not awake to find their precious vehicle still sitting where they parked it, instead of at the nearest Auto Auction. Attention is free, so PAYING ATTENION COSTS NOTHING! It sure can SAVE you a lot of headaches. The funny thing in reading some of these posts is how it's ALWAYS the Lender's fault. Like they forced you to make bad, or sometimes foolish, choices in your life and then PREVENTED you from picking up the phone and making intelligent arrangements to keep your vehicle. It's so SIMPLE, it is a shame we don't let minors sign the dotted line, because even a six year old idiot could do better than some of the adult groaners and moaners.


I agree with some of your statements! However, some people, like me, got laid off from their jobs; I didn't ask for this. I have been out of work for 8 months. I am working temp jobs just to get buy, but because the salary is NOT what I was making prior to being laid off, when I could afford the car payments. I am screwed. I have contacted my lender on numerous occasions and they DON'T give a crap. I have always, answered the phone and not ignored them and have ALWAYS tried to speak directly with them to deal with my situation. I have also gone out of my way to be courteous, because I realize they are just doing their jobs. Therefore, I volunarily had my car repossessed. Trust me when I say, I would have rather kept it and worked with the lender, but they refused! What does a person do then? I know that there are people out there who think they "deserve" to own a car they couldn't afford when they bought it and who hide from finance companies instead of dealing head on with their situation. I also believe that some of the finance companies need to take some responsibility in this matters. Someone without perfect credit can get a car, but the interest they charge is usually so high. Why don't the finance companies try to help people and get them in a payment they can afford instead of putting them in a very high interest rate and payment that you know down the road, if one little mishap happens in that person's life, they will not be able to pay? In my opinion, if you give someone who may not have a very high paying job a payment they can afford, then they will be able to continue to make that payment and pay off the loan, instead of having them (a lot of people are desperate and need transportation) agree to such an high payment. Put the shoe on the other foot.


lenders sometimes "allow" late payments for an extended period of time (even month after month, up to a year +); therefore, the contract you agreed upon is somewhat void (once you are at default - they are to repossess your vehicle THEN. NOT A YEAR AND A HALF LATER). in this case, some states require that the lender mail you a notice prior to repossession or they may have to pay you damages for allowing to remain lazy with them.


Cobb v. Midwest Recovery Bureau Company (1980) "Accepting Late Payments"


they must give you adequate time of notice to make a payment by a deadline "OR ELSE" before they can repossess your vehicle. they cannot just accept late payments for a year and then "surprise" you with their "remedy" that they have been ignoring for that amount of time.

Bankruptcy is a legal proceeding in which a person can get a fresh financial start. Bankruptcy can be very useful and effective in resolving financial problems in certain cases.

User Avatar

Wiki User

โˆ™ 2013-08-16 07:32:09
This answer is:
User Avatar
Study guides


26 cards

What is forfeiture

Which of these is the best description of delinquency

Which term is defined as property that is pledged as security on a loan

This is Paula's monthly budget What percent of her expenses is spent on insurance

See all cards
3 Reviews

Add your answer:

Earn +20 pts
Q: What are the laws on declaring bankruptcy after repossession?
Write your answer...
Still have questions?
magnify glass
Related questions

When were the new bankruptcy laws introduced?

There are some new laws that deal with bankruptcy that were passed in 2005. The change the way that one has to go about declaring bankruptcy and how it should be solved.

Does the constitution prohibit a state from declaring bankruptcy?

No, the only mention of bankruptcy is that Congress shall have the power to enforce uniform bankruptcy laws.

Can you file for bankruptcy with a repo on your credit?

The fact that you have a repossession on your credit report is not a determining factor of whether your can file for bankruptcy. Generally in bankruptcy you can remove the debts from the repossession of your vehicle.

Can you get your car back after a repossession if you file chapter 13 bankruptcy?

In GA Can you get your car back after a repossession if you file chapter 13 bankruptcy

Does bankruptcy remove a repossession from your credit report?


Can you file a claim in a bankruptcy for repossession fees?


Will bankrupcy stop a garnishment?

Will bankruptcy stop a repossession

Can a car be repossessed if involved in bankruptcy?

Depending on your state... a car that is included in a Chapter 13 Bankruptcy cannot be repossed. The Bankruptcy laws protect you from repossession. Just as long as you are in Chapter 13 and are making payments to the Trustee, your car cannot be repossessed.

Which is better to file bankruptcy or voluntary repossession?

file bankruptcy that bay you wont loose your stuff

What are the repossession laws in Wisconsin?

See the links below for the repossession laws and other information for Wisconsin.

Does declaring bankruptcy wipe out icbc debts?


Is it better to have a repossession or a bankruptcy on your record in regards to credit recovery?

Neither is good. However, a repossession does less damage and is removed from your credit report within less time than a bankruptcy.

People also asked