Can Bankruptcy Stop Repossessions?
Experienced Bankruptcy Attorney in Oklahoma City
When debts begin to pile up and start to become overwhelming, sometimes consumers can fall behind on payments, especially expensive car payments. This can lead to creditors taking actions to collect what they are owed. In some cases, this can involve repossessions, which means the lender will take back the vehicle they were allowing you to pay off over time. Fortunately, filing for bankruptcy can help individuals who are both facing repossession and have recently had their vehicle repossessed.
At Alexander Hilton & Associates, we have been faithfully advocating for consumers for more than two decades. We understand how important it is to keep vital assets like your home and your vehicle, especially when trying to work to pay off debt, rather than gain more. Without transportation, you could be out of a job and face even more uncertainty. That is why our Oklahoma City bankruptcy attorney is here to help you exercise your legal rights and utilize legal strategies to protect your possessions.
Understanding Automatic Stays and Repayment Plans
By filing for Chapter 7 or Chapter 13 bankruptcy, an automatic stay is put in place. Once this has been issued to creditors, they are required to cease all collection action against you. That means they cannot repossess your vehicle until further notice. In cases of Chapter 7, you may be able to use exemptions to keep your car instead of liquidating it to pay off creditors. In Oklahoma, the maximum value is $7,500 for individuals and for $15,000 married couples. If the value of your vehicle exceeds this exemption, you will be required to pay off the remaining amount or may have to liquidate it if you cannot.
Steps to Recover a Repossessed Vehicle in Oklahoma
If your car has been repossessed already, you can do the following to get it back:
- File for Chapter 13 bankruptcy
- Demonstrate that your vehicle is necessary to your household
- Create a repayment plan that will cover back and future payments
- File a motion for turnover ordering the lender to return your car
You will need to work with a well-experienced bankruptcy lawyer in Oklahoma City who knows how to effectively petition on behalf of their clients in such matters and has experience handling repossessions.
Lowering Your Car Payments Through Bankruptcy
When filing for Chapter 13, you may be able to use a car loan “cramdown,” which will essentially reduce your car loan to the actually value of the car. This would make the repayment plan much more reasonable, especially if the car has lost a significant amount of value. For example, say you got a $25,000 loan to pay for a new car several years ago. Now, the car has depreciated to a value of $8,000, but you still owe $18,000. By using a cramdown, you can eliminate the $10,000 difference and reduce your loan amount to only $8,000. You can also get your interest rate lowered in bankruptcy court using this tactic. However, to be eligible to cramdown, you must have bought your car around two and a half years before filing for bankruptcy.
Ready to Protect Your Vehicle and Finances? Contact Alexander Hilton & Associates for a Free Case Evaluation Today!
What Sets Us Apart
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Representation From a Law Firm With One of the Highest Client Satisfaction Ratings in the State.
Our dedication to client success has earned us top satisfaction ratings, ensuring you receive trusted, results-driven legal support.
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Personalized Attention From Start to Finish.
We take a hands-on approach to your case, providing direct support and tailored legal guidance every step of the way.
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Affordable Chapter 7 Bankruptcy Payment Options.
We offer flexible payment plans to make Chapter 7 bankruptcy more accessible, helping you move forward without added financial stress.
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Evening and Weekend Appointment Availability.
With evening and weekend appointments, we make it easy to get the legal help you need, on your schedule.
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After years of struggling w/deriorating health due to a series of heart attacks,I struggled with trying to maintain my chiropractic practice and remain current with my current obligations. The struggle became unbearable with the COVID 19 shutdown and I really don't know what I would have done without the very capable counsel of Atty.Alex Hilton. I was interviewed at length,explained what was expected of me and told how to collect the necessary documents. I will be forever grateful for the compassion and expertise demonstrated by this law firm .Thomas Joyce
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A wonderful, professional attorney who cares! Recently we were at our darkest moment, financially speaking. However, Mr. Hilton clearly explained our legal rights and obligations and demystified the bankruptcy process for us. No surprises at all -- I could not recommend him more highly!Aaron
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Calling Alex was the best decision we have made!!! We were in a bad situation and had previously recieved some bad advice that made our financial situation even worse. Alex agreed to meet us the same day we called him and he even stayed late to do so! After looking over our mess, he gave us his advice and he answered EVERY SINGLE QUESTION we had! The rest is history! He did everything he said he would!! If you need help and are looking for a bankruptcy attorney, then look no further!! Call Alex today! You will not regret it!Kenna
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Our case was complicated and our situation was dire. I was a nervous wreck. Mr. Hilton assured me that once I stepped foot in his office that our problems because his problems and to no longer worry about it. Of course we are only human so that wasn’t possible however, true to his word he took our case, which wasn’t just a straight forward easy chapter 7, and got it sorted out and got our discharge. I would HIGHLY recommend him.Steven
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My mother and I have used Mr. Hilton's services on two separate occasions, and we cannot say enough good things about him -- as an attorney, and as a person. He is approachable, polite, transparent about his business practices, sympathetic to each client's particular financial situation and, of course, very knowledgeable about the laws pertaining Chapter 7 bankruptcies. Whenever either of us had a question about the process, he answered our queries thoroughly, making sure we understood everything we needed to before moving forward. Subsequently, what could have been nightmarish ordeals for us both instead were handled with relative ease and care. If you are looking for someone to help you get back on track financially without judgment or the fear of being overwhelmed by what can be an arduous and costly process, then Alex Hilton is your man.Khan
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My wife was so nervous to file bankruptcy and Mr. Hilton talked with her and gave her the history of bankruptcy and the reasoning that is was the right thing to do in our case which set her mind at ease. Mr. Hilton is always there if we have questions and always quick with return emails and phone calls. Even months after everything is finished he is still there for us. Cannot recommend this man highly enough to do him the proper justice.L & M Johnson
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It's been almost a year since Mr. Hilton saved us from a desperate situation. He helped us overcome an incredible burden and helped relieve a tremendous amount of financial stress we were dealing with on a daily basis. Personally, I was terrified and overwhelmed and he helped make an impossible situation manageable and he did so with patience and extreme kindness. He answered all of our questions and was always prompt with returning phone calls. The entire process was seamless for us and we couldn't have asked for a better attorney to represent us during the bankruptcy process.M&S B.
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After having a flake for our 1st attorney, Alex Hilton turned our case around and got us amazing results. He worked hard on our mess of a Chapter 13 case. I will recommend him to anyone I know that is in need of a Bankruptcy Attorney. He is kind , compassionate and doesn't mess aroundFormer Client
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