If you are behind on car payments, the creditor may take possession of your vehicle without notice. Unless the contract gives you a grace period, the car may be taken if you are only a day late. You are not required to give the car to a creditor, but they may take it from the street or a parking lot. Concealment of the vehicle with intent to hinder the creditor is a crime. If the creditor sells the vehicle at an auction, you will be liable for the balance remaining on the loan after the sale plus the Creditor's collection expenses.

Chapter 13 stops repossessions. If a car has been repossessed but not sold by the creditor when the case is filed, the Court may order the creditor to return the vehicle to you. Under Chapter 13, interest rates may be reduced, and you may be required to pay back only the value of the vehicle, even if this is much less than what is owed on the loan. In Chapter 13, you pay one monthly payment to the Trustee, which is consolidated with your other debts. Often, this payment is less than the car payment alone. We can give you an estimate of what your payment would be in a free consultation.