Stop Car Repossession in Michigan
After years of making your payments on time, having your car repossessed is the last thing you want! Unfortunately, that is precisely what can happen if you fall behind on your payments.
The lender can:
- Take back the vehicle
- Sell it
- Hold on to the payments you've made
- Sill make you pay whatever balance is left
Don't let this happen to you! If you are in danger of losing your car, you have options. Call or text DebtStoppers today at 313-880-3970 to request a free debt relief analysis with one of our skilled Michigan bankruptcy attorneys. Our knowledgeable lawyers understand how to use bankruptcy laws to stop repossession.
Michigan Repossession Laws
If you financed your vehicle, you probably signed a legal agreement with a bank or other lender to pay monthly installments until the full balance is repaid. Under Michigan laws and the terms of most auto loans, if you can't make your payments, the lender has the legal right to assume ownership of the car or truck.
You can turn the vehicle back in as a voluntary surrender, or the lender can send someone to tow it away. Michigan laws offer you some protection in the repossession process. When the repossession agents come to claim the vehicle, they cannot:
- Break and enter a closed structure, such as a garage
- Breach the peace with a loud disturbance
After the repo, Michigan laws require a 15-day redemption period. During this time, you have the right to redeem your vehicle through payment or filing for bankruptcy.
After a lender repossesses a vehicle, they sell it at auction to cover the cost of the remaining loan balance. If it sells for a lower price than what you owe on the loan, Michigan laws keep you on the hook for the rest.
How To Protect Your Car or Truck?
Fortunately, bankruptcy laws can help you stop repossession while providing the debt relief your family so desperately needs. Not only does bankruptcy allow you to stay on the road, but it can also wipe out your other consumer debts.
The moment you file for bankruptcy in Michigan, the court will grant you an automatic stay that forbids repossession. You can choose to file under Chapter 7 or Chapter 13 of the federal bankruptcy laws.
If you go with Chapter 13, you can reorganize your debts into a 3-to-5-year repayment plan. You'll get to keep your car — and all your other possessions — so long as you follow the repayment schedule. You can also get a lower payment that reflects the vehicle's actual value instead of the inflated, high-interest payments you're currently making.
On the other hand, Chapter 7 lets you completely wipe out your debts instead of repaying them. Even though Michigan laws allow a court-appointed trustee to liquidate your "non-exempt" assets to pay back creditors, most DebtStoppers get to hold onto most of their belongings (if not all of them!) You can almost always work out a way to keep your car.
Get Assistance From an Experienced Local Lawyer
If you're concerned about repossession, call or text DebtStoppers today at 313-880-3970 to schedule a free initial consultation with one of our skilled Michigan lawyers. We have helped thousands avoid repossession, and we can help you too.
Keep your family on the road! Call or text DebtStoppers today at 313-880-3970 to stop repossession.