Car Repossession in Woodland Hills

More Than 50 Years of Combined Bankruptcy Experience

If your vehicle is at risk, our bankruptcy attorneys can evaluate ways to stop a threatened vehicle repossession, manage car loan arrears, and address overwhelming debt. Since 1996, Cal West Law has represented individuals and families in Woodland Hills facing financial hardship, foreclosure, and unaffordable secured debt.

Founding attorneys Ali R. Nader and Nathan A. Berneman work directly with clients throughout the process. We explain how Chapter 7 bankruptcy or Chapter 13 bankruptcy may affect your vehicle based on your loan, payment history, equity, prior filings, and eligibility.

Call (818) 446-1334 to request a free consultation and discuss your options before deciding whether to file.

How Bankruptcy May Stop a Pending Repossession

Filing a bankruptcy petition generally creates an automatic stay under 11 U.S.C. § 362. This court order stops most collection activity and can halt a pending repossession as soon as a liquidation or repayment case is filed.

The stay is neither permanent nor absolute. A lender can ask the bankruptcy court for relief if required payments aren’t maintained or the debtor doesn’t comply with the applicable chapter. A bankruptcy dismissed within the preceding year can also limit how long the protection remains effective, while multiple prior dismissals can prevent it from taking effect automatically.

Woodland Hills cases are processed through the U.S. Bankruptcy Court for the Central District of California, San Fernando Valley Division. We review the circumstances affecting the stay before explaining how a filing could address a scheduled or threatened repossession.

Choosing a Bankruptcy Path for a Financed Car

The appropriate chapter depends on more than whether you want to keep the car. We consider your income, vehicle equity, loan balance, missed payments, other debts, and eligibility. California exemption amounts also affect whether vehicle equity can be protected, and the applicable figures should be confirmed when the case is evaluated.

Chapter 13 Repayment Plans

Chapter 13 bankruptcy can address car loan arrears through a court-supervised repayment plan lasting three to five years. Past-due amounts can be included in the plan while the debtor keeps the vehicle, provided the required plan obligations and ongoing payments are maintained.

A cramdown can sometimes reduce the secured portion of a vehicle loan to the car’s fair market value. This treatment has important restrictions. A purchase-money loan for a personal-use vehicle acquired within 910 days before filing generally can’t be reduced to the vehicle’s value through a cramdown.

Chapter 7 Vehicle Choices

Chapter 7 bankruptcy generally provides three choices for a financed vehicle. Each has different financial and legal consequences, so we review the loan and the client’s broader budget before a decision is made.

The principal options are:

• Reaffirmation: A reaffirmation agreement keeps the loan in place, with the debtor continuing to be personally responsible for the debt.
• Redemption: Redemption allows the debtor to keep the vehicle by paying its fair market value in a lump sum, subject to court requirements.
• Surrender: Vehicle surrender returns the car to the lender and can allow a dischargeable deficiency balance to be addressed in bankruptcy.

Options After a Vehicle Has Been Repossessed

A completed pickup doesn’t always end every bankruptcy option. If the lender hasn’t sold the vehicle, filing before the sale may stop it through the automatic stay. Depending on the governing law and the circumstances, the lender may be required to return the vehicle, although return isn’t assured in every case.

After a lender sells a repossessed car, the proceeds are applied to the loan and permitted repossession-related charges. Any unpaid amount left afterward is called a deficiency balance. If dischargeable, that balance can generally be eliminated in bankruptcy, including when the vehicle is surrendered rather than retained.

A debtor seeking a discharge through liquidation must also file a Statement of Intention stating whether a secured vehicle will be reaffirmed, redeemed, or surrendered. The statement is generally due within 30 days after filing or by the meeting-of-creditors deadline, whichever occurs first.

What to Expect from Your Repossession Consultation

Our free consultation takes place before you decide whether to file. We review the repossession status, vehicle loan, missed payments, household debt, prior bankruptcy history, and your goal for the car. We then explain the available paths in understandable terms and guide you through the next steps.

Bankruptcy isn’t the only form of debt relief we provide. Our services also include debt settlement, lender negotiation, and foreclosure defense. We offer legal services in English, Spanish, and Farsi so clients can discuss complicated financial decisions in the language they’re most comfortable using.

Discuss Your Vehicle & Debt Relief Options

A free consultation can clarify which debt-relief strategy may fit your circumstances before you commit to filing. Payment plans are available for bankruptcy representation, and we offer a $0-down option for qualifying liquidation filings.

Call (818) 446-1334 to speak with us about a threatened, scheduled, or completed vehicle repossession.