Experienced Attorney Helping Oklahoma City Clients Stop Vehicle Repossession
Many people in Oklahoma use their personal vehicles as their main form of transportation. But sadly, some of these people will lose their vehicles after falling behind on their monthly payments.
Not having a car can make it difficult to get to work, run errands, drive your kids to school, or seek medical treatment. Fortunately, there are ways to stop vehicle repossession before it completely disrupts your life. If you are in danger of losing your personal vehicle, it’s important to contact the vehicle possession attorneys at Mitchell & Hammond to discuss your legal options.
When Can Lenders Repossess Vehicles in Oklahoma City?
If you are still making payments on your vehicle, you need to understand when your lender is legally allowed to repossess your car. Lenders in Oklahoma can repossess your vehicle whenever you fail to honor the terms of the loan agreement. In Oklahoma, lenders will not have to go through the court in order to take possession of your vehicle. They are allowed to repossess your vehicle as long as they do not disrupt the peace or violate any laws while doing so. Furthermore, they are not obligated to notify you of their plan to repossess the car.
The law allows lenders to repossess vehicles at any time after the loan agreement has been breached. This means you could lose your vehicle after missing a single loan payment.
What to Do If You’re Behind On Car Payments in Oklahoma City
Don’t leave your lender in the dark if your financial situation changes and you are no longer able to make your car payments. Talk to your lender as soon as possible if you are behind on car payments. Some lenders are more understanding than others, so it’s possible that your lender will allow you to renegotiate the terms of your agreement. But if this does not work, there are other ways to stop vehicle repossession.
How to Stop Vehicle Repossession With Chapter 7 Bankruptcy
Filing for Chapter 7 Bankruptcy will trigger what is known as an automatic stay, which is an injunction that temporarily prevents certain creditors from collecting debts from you. If an automatic stay is in effect, your vehicle cannot be repossessed. However, the lender can ask the court for permission to repossess your vehicle in spite of the automatic stay. If this request is granted, the lender can repossess your vehicle even after you have filed for Chapter 7 Bankruptcy.
It’s not easy to retain ownership of your vehicle by filing Chapter 7 Bankruptcy, but there are several options, including:
- If you owe more than what your car is worth, you may be able to keep your vehicle by paying the lender the fair market value of the car.
- Make up for missed payments to stop the repossession.
Discuss these options with an attorney to determine the best way to keep your vehicle. If you cannot make either one of these lump-sum payments, you may need to surrender your car to the lender after filing for Chapter 7 bankruptcy.
How to Stop Vehicle Repossession With Chapter 13 Bankruptcy
Filing for Chapter 13 Bankruptcy could help you retain ownership of your vehicle. But filing for bankruptcy is a major financial decision that should be seen as a last resort.
The automatic stay will also go into effect after filing for Chapter 13 Bankruptcy. The automatic stay will not completely protect you from repossession. Lenders still have the right to ask the court to lift the stay and allow them to repossess your vehicle. But an attorney can help you fight this request.
If you want to keep your vehicle, you must incorporate the missed payments into your Chapter 13 repayment plan. In addition to making up for these missed payments, you must also stay current on monthly payments moving forward to keep your car. If the court approves your repayment plan—and you successfully complete all of the required payments—you will get to keep your vehicle.
Schedule A Free Consultation With Our Vehicle Repossession Prevention Attorneys
If you are at risk of losing your vehicle, seek legal representation from the experienced Oklahoma City vehicle repossession lawyers at Mitchell & Hammond as soon as possible. We know how much families rely on their personal vehicles, which is why we are dedicated to helping them stop vehicle repossession. Let our team review your case to determine how to help you retain ownership of your vehicle. To schedule a free consultation, call 405-216-0007 or submit your information via the form on this website.