How Should Debtors Handle Repossessions When Considering Bankruptcy?If you’re behind on your car payments you have probably considered filing bankruptcy. The only problem is that if your car is repossessed and sold at auction before you file your bankruptcy, there is no way of getting it back.  So what should a debtor do if they are facing repossession while they are still considering bankruptcy?

Let’s take a look at a few tips:

  1. The first thing a debtor considering bankruptcy should do if facing repossession, is contact their vehicle finance lender by phone and letter.  Try to see if they are willing to give you a reprieve of another 30 days or more while you sort out your financial issues. You don’t need to announce that you are considering bankruptcy, just simply tell them that you need more time.  Remember, most vehicle loan companies don’t want to use repossession if they don’t have to.
  2. Keep your vehicle in a closed and locked garage, at least until you can file bankruptcy. In the state of Texas, the repo-man does not have the right to forcibly break into your house (and your garage is part of your house) or enter a closed gate when trying to repossess a vehicle.  Furthermore, they cannot forcibly remove you from your vehicle.  On the note of using force, DO NOT ever attempt to physically or even verbally stop a repossession agent from doing their job, doing so could get you hurt or put in jail.
  3. If repossession of your vehicle is imminent, contact a Dallas bankruptcy attorney immediately so that they can file your bankruptcy fast.  Sometimes a bankruptcy attorney can file what’s called an “emergency bankruptcy” if the circumstances call for such action.