Car loans are secured credit accounts, which means the lender can repossess the vehicle if you fail to make regular payments. However, the lien holder can’t just take your car for one missed payment, and most states have laws that protect the rights of borrowers. Bankruptcy can also provide relief from repossession, helping you keep your vehicle or get it back if it’s already been taken by the bank. Here’s what you need to know about bankruptcy and repossession in Ohio.

What Are the Lender’s Requirements?

Every loan agreement should outline the specific circumstances in which the lender can repossess your car, including how many payments you’ve missed and any grace period that might apply. In Ohio, the creditor must also send a notice within five days, detailing how much you’ll have to pay to get your vehicle back. This amount will usually include the past due balance, as well as any late fees and the cost of the repossession.

How Can You Stop Repossession?

Filing for either a Chapter 7 or 13 bankruptcy triggers an automatic stay, which puts an immediate stop to all collections activity, including repossession and foreclosure. While a Chapter 7 doesn’t eliminate secured debt, it might give you the resources you need to catch up or allow you to renegotiate the terms of your loan. Chapter 13 bankruptcies are specifically designed to help those struggling with auto loans and mortgages, giving you the chance to make up your arrears through a court-managed repayment plan.

How Can You Get Your Vehicle Back?

A good bankruptcy attorney could help you get your car back if it was repossessed shortly before you filed. If your Chapter 13 bankruptcy plan includes paying back the lender, you might be able to file a motion to have your vehicle returned, as long as you make small payments while the case is processed. In some cases, the lender will return your vehicle without a court order if your plan ensures they’re going to be paid.

From his offices in Hamilton, OH, Harry B. Zornow provides effective bankruptcy advice and debt-relief options for struggling borrowers throughout the area. With over 30 years of experience, he has the expertise and legal understanding to help you get the second chance you deserve. To start your path toward solvency, visit him online or give him a call at (513) 737-9770 today.