When facing car repossession, consulting with our Southfield, MI Chapter 13 bankruptcy lawyer may be the best step toward regaining control of your vehicle and your financial future. At Gudeman & Associates, P.C., we help clients use Chapter 13 bankruptcy to stop repossession and create a manageable plan to pay off what they owe while keeping essential assets.
How Car Repossession Works
Car repossession happens when a lender takes back a vehicle after missed payments. Unfortunately, this can happen quickly—sometimes after only a few missed installments. Once the car is repossessed, lenders can sell it at auction to recover the balance, often leaving borrowers still responsible for any remaining debt. This financial burden can make recovery difficult without legal guidance from our Southfield Chapter 13 bankruptcy attorneys.
How Chapter 13 Bankruptcy Can Help You Keep Your Car
Chapter 13 bankruptcy offers a powerful tool for individuals who have a steady income but have fallen behind on payments. Filing a Chapter 13 petition immediately triggers an “automatic stay,” which stops creditors from taking further action, including repossession or collection attempts. This gives you time to restructure your debt into an affordable repayment plan—typically over three to five years—while keeping your car.
With the help of our consumer bankruptcy lawyers, you can spread overdue payments over your repayment plan rather than paying them all at once. In some cases, the total loan amount can even be reduced to the car’s current market value. This approach not only helps you retain your vehicle but also prevents further credit damage caused by a repossession.
Why Chapter 13 Is Often The Best Option
Many people wonder whether Chapter 13 or Chapter 7 is the better route. Chapter 7 can erase many debts but often leads to asset liquidation, including your car. Chapter 13, on the other hand, allows you to keep your vehicle while repaying your debt under court supervision. It’s especially helpful for those who rely on their car to get to work, school, or care for family members.
Working with our financial reorganization lawyers means having experienced guidance on how to develop a repayment plan that fits your budget and meets court approval. This process not only helps prevent repossession but also helps rebuild your financial stability over time.
Additional Benefits Of Chapter 13 Bankruptcy
Beyond saving your car, Chapter 13 offers several other advantages. It consolidates your debts into one monthly payment, helping reduce financial stress. It can also help stop foreclosure on your home, prevent wage garnishment, and manage unsecured debts such as credit cards and medical bills.
Our debt restructuring lawyers can guide you through each step, making sure your repayment plan accounts for both secured debts like car loans and unsecured debts that may qualify for partial repayment or discharge.
Take The First Step Toward Getting Your Car Back
If your car has been repossessed—or you’re worried it might be—there’s no need to face it alone. Chapter 13 bankruptcy provides a practical path to keep your vehicle and manage your debt more effectively. Our experienced Southfield Chapter 13 bankruptcy lawyers can evaluate your situation and help you determine the best strategy for your circumstances.
At Gudeman & Associates, P.C., we’re committed to helping clients rebuild their financial futures with integrity and compassion. We offer no-obligation consultations, so you can discuss your case in detail with us without being locked in. But when you reach out to us, you know that you’re getting trusted legal guidance. We serve clients throughout Southeastern Michigan, and we look forward to providing our services to you, too. Contact us today to schedule a consultation and learn how our legal team can help you recover your car and restore your financial peace of mind.
