Bankruptcy and Vehicle Repossession in Ohio

A reliable vehicle is essential for most people living in Pickerington and Lancaster. When car payments fall behind, the threat of repossession becomes immediate and frightening. Bankruptcy can often provide a powerful defense.

Once a bankruptcy case is filed, the automatic stay stops most repossession actions immediately. If the vehicle has not yet been taken, the lender generally must halt efforts to seize it without court permission.

In Chapter 7, debtors may be able to reaffirm the loan, redeem the vehicle for its current value, or surrender it and eliminate any remaining deficiency balance. In Chapter 13, past-due payments can typically be repaid over time while the debtor keeps the vehicle.

For families in Fairfield County, losing a car often means losing the ability to work. Bankruptcy often preserves transportation and income simultaneously.

Even if a vehicle has already been repossessed, filing bankruptcy quickly may allow recovery of the vehicle in certain circumstances.

If you are behind on a car loan or facing repossession, the timing of your bankruptcy filing is critical. Acting early often makes all the difference. For more information, call the Law Office of David A. Bhaerman at 614-834-7110 or schedule a Free Consultation Online.