Saving Your Home and Car

Our Fort Worth Bankruptcy Attorneys Can Help

If you are being threatened with foreclosure or repossession and live in the Fort Worth area, you should consider filing for bankruptcy. Many people are concerned that a bankruptcy might mean losing property -- but in many cases, a bankruptcy can actually save a house or car from being lost.

The fate of your house and/or car during bankruptcy depends on your circumstances and the choices you make. It is vital to get a lawyer who can give you the right advice and then fight to make your wishes a reality.

Help! My Car Has Been Repossessed!

Imagine this: you are behind on your car payments. Heck, you are behind on a lot of bills, and perhaps you have been considering bankruptcy for some time. Then one day you walk out the door for work and discover. . .

Your car has been repossessed!

Don’t despair! Bankruptcy can still help. Call an experienced bankruptcy attorney immediately because you may be able to get your vehicle returned to you.

The law in most areas (including the Sixth, Seventh, Eighth, Ninth, and Tenth Circuits) is when a debtor files a Chapter 13 bankruptcy, the creditor must immediately return a repossessed vehicle to the debtor. This is because even though the creditor has taken possession of your vehicle, you are still the legal owner. The Bankruptcy Code states that in a Chapter 13, a creditor in possession of a debtor’s asset must ordinarily relinquish the asset back to the debtor.

However, this begs the question: what if your car is sold at auction or the creditor transfers the vehicle title out of your name? If this transfer is done after the Chapter 13 bankruptcy is filed, it is typically a violation of the automatic stay and the vehicle will be returned. If the transfer is done before the Chapter 13 bankruptcy is filed, you are out of luck. You no longer have ownership of the vehicle.

If the creditor refuses to return the vehicle, or does not return the vehicle in a timely manner, most courts will sanction the creditor. Once your vehicle is returned you must provide “adequate protection” to the creditor to assure that the property will be safeguarded and that the creditor will be adequately compensated. This usually takes place by submitting a Chapter 13 plan of repayment to the bankruptcy court.

If your vehicle has been repossessed, take immediate action! Call an experienced bankruptcy attorney and discuss your options. Your attorney can help you make the right financial choice for yourself and your family.

Act Quickly

Our lawyers need about a week before the sale of your home to make sure you don't lose it. We can also often get your car back if you lost it recently. In general, there is no end of work we can do on your case, and it is vital to call for at least a consultation before things get out of hand. Contact the attorneys of Fears | Nachawati to ask them about the best option for your situation.

Behind on House and Car Payments?

Chapter 13 bankruptcy is designed for people who make a sizable living but cannot keep up with their house or car payments or have considerable tax debt. You will have to contribute a portion of your paycheck toward your debts for 3-5 years. You can then eliminate debt interest-free.

Under a Chapter 13 wage earner's plan, you will not have to liquidate as many assets under a Chapter 13 as you do under a Chapter 7. Under Texas law, your house and a car for each adult of driving age is exempt, meaning you will keep them.

Current on House and Car Payments?

If you are current on your house and car payments, but have other overwhelming debts, you are better off with a Chapter 7. Chapter 7 bankruptcies are designed for people who simply do not make enough money to pay credit card bills, medical bills, or other expenses.

Some people who undergo a Chapter 7 have to sell off their house, car, or other assets to pay some of their debts. Once this is done, the debts are discharged, and then they can make a fresh start. But if you are current on your payments, you are much less likely to lose them.

Contact us with any Questions

Contact us any time and find out how our attorneys can help you keep your house or car. We maintain office hours 6 days a week and can meet with you in the evenings or on weekends. Flexible payment plans are available.

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We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.