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Repossessions and Bankruptcy

Has your car been threatened with repossession?

Talk to a Renton, WA bankruptcy attorney today!

Can I stop a repossession by filing a Washington State bankruptcy?

If you fall behind on the payments of your car, the finance company can repossess the car from you without warning.  A Renton, WA bankruptcy filing, however, stops this threat immediately.  In a Washington Chapter 7 bankruptcy, you will have to get caught up on your payments very quickly if you want to keep your car.

In a WA State Chapter 13, the car payments can be reorganized with your other debt to make it more affordable and you get to start over with your payments.   In some circumstances, a Chapter 13 filing can even help recover a recently repossessed car.

If your car has already been repossessed and sold at auction, there is a good chance you will owe a “deficiency”.  This is the difference between the loan payoff and the price of the car at auction.

This deficiency amount is now simply another unsecured debt and can be discharged in a Washington bankruptcy.  If there is a cosigner on the account, however, that person will be liable for the debt (unless, of course, they file for bankruptcy too).