Was Your Vehicle Repossessed in Pittsburgh Before You Were Able to File for Bankruptcy Relief?
Making ends meet in tough times can be difficult enough even before your vehicle is repossessed. Without your vehicle, you may find it difficult to get to work or a job interview making your troubled financial condition even worse. If you have experienced a vehicle repossession in Pittsburgh, you may be able to get your car back for good by filing a voluntary petition for relief under the United States Bankruptcy Code.
How Vehicle Repossession Works
Vehicle sales in Pennsylvania are typically financed through a retail sales installment contract. That contract provides the lender with a security interest in the automobile until the loan is paid off. If a borrower cannot or does not pay regular monthly payments and falls behind, the lender may exercise the legal right to take possession of their collateral and sell it. Under the Uniform Commercial Code, lenders are required to send notices to borrowers following repossession, advising them of the disposition of the vehicle and what the borrower must do in order to get the vehicle back. Borrowers may have the right to cure their loans meaning bring the loan current by paying the current and past due amounts owed along with the costs of repossession. Other borrowers may find that the only rights listed in the notice they received from their lender is a right to redeem the vehicle meaning payment of the entire amount still owed to the lender.
If the lender sells a repossessed vehicle, it must send the borrower a second notice with information about the sale and whether there was a surplus or if the borrower owes a deficiency to the lender. The form and content of the notices issued by the lender are very important and the failure of a lender to provide notices as mandated by the statute can give rise to a claim for damages against the lender.
Getting Your Repossessed Automobile Back After Filing Bankruptcy
Vehicle lenders are often familiar with the bankruptcy process and will make arrangements with your bankruptcy lawyer for the prompt return of your vehicle. In certain cases, your bankruptcy lawyer may need to petition the bankruptcy court for the turnover of your vehicle to you. You will still be required to pay the amounts due to your lender but you may be able to do that over a period of three to five years in a case under chapter 13. Additionally, in certain circumstances, you may be able to “cramdown” on lender in a case under chapter 13 and compel it to accept only the value of the vehicle even if you owe considerably more than the vehicle is worth. In a case under chapter 7, you may also be able to redeem your vehicle for less than the amount you owe. In Pittsburgh, your bankruptcy lawyer may be able to arrange for you to receive a loan for the value of the vehicle that could save you a considerable amount of money, giving you even more freedom to make the most of your fresh start.
Talk to Your Pittsburgh Bankruptcy Lawyer to Determine if You Can Get Your Repossessed Vehicle Back by Filing a Bankruptcy Case
Whether you can get your vehicle back by filing a bankruptcy case may depend on several factors. Timing is very important. The filing of your bankruptcy case will give rise to the “automatic stay” which will prevent the lender from selling your vehicle. However, if you file your bankruptcy case after your lender has sold your vehicle, you may find that you will be unable to get it back. If your car is repossessed in Pittsburgh, you should call an experienced bankruptcy lawyer immediately. Give yourself the best chance to get a fresh start and get back on your feet. Expert bankruptcy professionals may be able to help you get your car back quickly through a bankruptcy case.