If your vehicle – car, truck, van, motorcycle, etc. – has been repossessed, you may be able to have it returned to you. If you file a Chapter 13 bankruptcy within 10 calendar days of the repossession, the finance company will usually return the vehicle to you and allow you to make payments within a Chapter 13 bankruptcy. Before the vehicle is returned to you, you will be required to pay the fees resulting from the repossession and provide proof of adequate insurance coverage. In rare cases, the finance company may not voluntarily return the vehicle to you, and you may be required to take additional legal action with the bankruptcy court in an attempt to have the vehicle returned. In these cases, the bankruptcy judge will decide whether the vehicle should be returned to you.

If you wait too late to have the vehicle returned to you or decide you do not want to save the repossessed vehicle, you may want to file a Chapter 7 or Chapter 13 bankruptcy to eliminate the debt from the repossession. Many people do not realize that they are financially responsible for the balance owed on a repossessed vehicle, whether voluntarily or involuntarily repossessed, after it is sold at auction. For example, if you owe $15,000 on your vehicle and it is sold at auction for $8,000, you would be financially responsible for the remaining $7,000. If you qualify for Chapter 7 bankruptcy, it would eliminate the entire $7,000 debt. If you do not qualify for Chapter 7 bankruptcy, you may file a Chapter 13 and eliminate most of the $7,000 debt.