My Car Has Been Repossessed by a Creditor. What Should I Do & Can a Lincoln Bankruptcy Lawyer Help?

March 11, 2022 | By Steffens Law Office
My Car Has Been Repossessed by a Creditor. What Should I Do & Can a Lincoln Bankruptcy Lawyer Help?

We’re sorry–having your car repossessed by a creditor is a difficult place to be in. You rely on your car for nearly everything: getting groceries, going to school, going to work, driving your kids to and from activities, and other basic errands. We know that life can get in the way sometimes and can make it impossible to make car payments. Even so, creditors don’t care. So when they repossess your car, you might wonder: What can I do? What are my options? Can a Lincoln bankruptcy lawyer help me get my car back?

Let us take some of the burden off your shoulders by helping you understand this process. 

Lincoln bankruptcy lawyer for car repossessed by creditorUnderstanding the Process When Your Car Has Been Repossessed

When your vehicle is repossessed, your creditor will take the car to an impound lot or back to their place of business. After a period of time, they’ll auction it off to cover some of the outstanding balance. They rarely sell the vehicle for what it’s worth or what you owe. According to our experienced Lincoln bankruptcy lawyer, this means not only will you not have a car, but you will also still have debt on that car. What should you do then? 

Call your creditor to see if they’ll work with you!

  • Make sure their records are accurate. Find out if you are really behind on payment, or if it’s a mistake. 
  • Ask them if your vehicle has been repossessed for another reason. Did your car insurance expire, for example? 
  • Ask them how much you’d have to pay to get your vehicle back. If they agree, you may be subject to higher monthly payments or be required to pay a lump sum of what you owe.

If your creditor won’t work with you, or you can’t afford to make the payment, then they’re going to sell your vehicle. That means they’ll likely not sell it for the remaining balance due, meaning you will still owe them money. Once that happens, they will sue you for the remaining balance. They may garnish your wages or your bank account to get their money back. 

This can be a terrifying thing to face. Not only is your vehicle gone, but you still owe money you may not be able to afford! 

This is stressful, but take a deep breath. There’s still another option: 

Contact Our Lincoln Bankruptcy Lawyer for Help Filing

I know it sounds scary, having to file for bankruptcy, but in actuality, it may be the best thing for you. A bankruptcy can help you get your vehicle back, and will wipe out the remaining debt you have. 

Even if you’re facing vehicle repossession, you still have the ability to protect yourself. If your vehicle has been repossessed or is about to be, please contact our Lincoln bankruptcy lawyer at Steffens Law for help! Reach out to us online or give us a call today at (308) 872-8327 so our Lincoln bankruptcy lawyer can help you understand if filing is right for you.