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The Law Offices of Rounds & Sutter, LLP serves clients in Santa Barbara, Goleta, Ventura, Oxnard, Lompoc, Santa Maria, Carpinteria, Ojai, Camarillo, Buellton, Solvang and Santa Paula, CA. We serve Santa Barbara County, Ventura County and San Luis Obispo County, California.

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We are a debt relief agency,helping people file for bankruptcy relief under the Bankruptcy Code. Visit our Ventura bankruptcy practice website.

Information you obtain at this site is not, nor is it intended to be, legal advice. Consult an attorney for individual advice regarding your own situation.

Bankruptcy and Your Vehicle

Save Your Car or Truck from Repossession

A Chapter 7 or Chapter 13 bankruptcy may allow you to stop vehicle repossession. If a vehicle is involved in your business, than Chapter 11 provides options. When you file for bankruptcy, an automatic stay is created. The automatic stay causes a temporary halt to many types of collection activity, including auto repossession.

Your car is important to your livelihood and lifestyle. In California, as elsewhere, having reliable and economical transportation for work needs and for your family’s needs is very important. For a business - a commercial vehicle (truck, van, or livery) may be a necessity to keep operations moving.

If you are eligible for a Chapter 7 bankruptcy, you can discharge your unsecured debts, like credit card bills and medical bills. Unfortunately, secured debts (debts secured by collateral), including auto loans, are different. If you file for a Chapter 7 bankruptcy and still owe a debt on your vehicle loan, your debt may be discharged, but the auto dealer can repossess your vehicle.  For reorganization of debts under Chapter 13 or Chapter 11 - repayment options may be available to help you keep the vehicle.

Timing is Important

To stop repossession from happening, you may reaffirm your auto loan debt with the same creditor. You may also keep the car through a process known as redemption. Redemption is essentially a refinancing based on the current value of the car, as opposed to the amount which is owed to the initial lender. The remainder of what had been owed to the initial lender is then discharged in the bankruptcy. In other words, redemption allows you to keep the car by taking out a loan for the present market value of your vehicle, replacing you original loan with one you may be able to afford.

Contact An Attorney Today for a Free Consultation

We provide experienced representation for individuals and families that need a fresh start that Chapter 7 offers or the increased time and payment option that Chapter 11 or Chapter 13 offers. Many people who file for bankruptcy have struggled with high interest payments and expensive late fees for many months on a variety of debt, including car loans. To discuss whether it may be advisable to bring all that to a close by filing bankruptcy, please contact our office today to schedule your free consultation at 805-617-3385 or send an E-Mail .

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