Michigan Repossession Attorney

Don’t let the fear of repossession control your financial future. Contact our certified bankruptcy attorney’s today for a free detailed consultation.

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Facing the fear of repossession can be tough. Wondering if bankruptcy can stop it?


The answer lies in the automatic stay – a bankruptcy feature that hits the pause button on repossession threats. Whether you're considering Chapter 7 or Chapter 13, the automatic stay is your best bet. It gives you time to tackle financial hurdles and move towards a more secure financial path. 

Can I Get Recover My Vehicle After Repossession in Michigan by Filing Bankruptcy?

In the year 2022, Michigan witnessed 220 filings for business bankruptcy, marking a decrease from the preceding year's count of 251 cases.


Yes, filing for bankruptcy in Michigan can potentially help you get your car back after a vehicle repossession through a process called redemption. When you file for bankruptcy, an automatic stay goes into effect, which temporarily halts repossession proceedings and provides some breathing room.


Here's how the process may work:

Navigating the complexities of redemption and the bankruptcy process is best done with the guidance of a knowledgeable bankruptcy attorney who can help you understand your rights, negotiate with the lender, and work towards a solution that aligns with your financial goals. Book a free consultation today!!

What is The Timeframe for Reclaiming My Repossessed Car?

To retrieve your car, it's essential to intervene before the auction stage. The timeline for your car's auction varies based on your lender and state regulations, but typically, lenders sell repossessed vehicles within a few weeks.


If your car has already been sold, Chapter 7 bankruptcy may not be effective in facilitating its return. Filing for bankruptcy before the sale offers the most favorable prospects for recovery.

Recovering the Car After Filing for Chapter 7

Recovering a repossessed car after filing for Chapter 7 bankruptcy involves several considerations. Chapter 7 is a liquidation bankruptcy, and its primary focus is on the discharge of unsecured debts through the sale of non-exempt assets.

Automatic Stay: Upon filing for Chapter 7, the automatic stay goes into effect. This legal provision temporarily halts creditors, including the lender who repossessed your car, from pursuing further collection actions. This stay provides a brief respite, giving you time to explore your options.

Exemption Status: Chapter 7 allows debtors to claim exemptions for certain types of property. These exemptions protect specific assets from being liquidated to repay creditors. Whether you can retain your repossessed car depends on the exemption status for vehicles in your state.

Reaffirmation Agreement: In some cases, debtors may have the option to sign a reaffirmation agreement with the lender. This agreement essentially reestablishes the debt, allowing you to keep the car by continuing to make payments. However, the court must approve the reaffirmation, and it requires careful consideration of your financial situation.

Surrendering the Vehicle: If keeping the repossessed car is not feasible or not in your best interest, you can choose to surrender it as part of the bankruptcy process. The lender would then sell the vehicle to recover the outstanding debt.

Deficiency Balance:  It’s important to understand that if the sale of the vehicle does not fully cover the outstanding loan balance, you may still be responsible for the deficiency. Chapter 7 generally discharges unsecured debts, but it doesn’t eliminate secured debts like car loans. Therefore, negotiating with the lender to address any remaining balance is important.

Consultation with an Attorney: Given the complexities involved, consulting with a bankruptcy attorney is highly recommended. Our certified attorney can assess your situation, guide you on exemption strategies, advise on reaffirmation agreements, and help you make informed decisions regarding your repossessed car.

While Chapter 7 bankruptcy provides a temporary pause through the automatic stay, the ultimate fate of the repossessed car depends on various factors, including exemption laws, reaffirmation agreements, and your overall financial circumstances.

Recovering Your Car After Filing Chapter 13

Recovering a repossessed car after filing for Chapter 13 bankruptcy involves a structured process aimed at providing debtors with an opportunity to catch up on missed payments and retain their vehicles. Chapter 13 is a reorganization bankruptcy that allows individuals to create a court-approved repayment plan spanning three to five years.


Similar to Chapter 7, filing for Chapter 13 triggers an automatic stay, putting a temporary halt to repossession proceedings. This stay provides immediate relief and allows debtors to explore options for retaining their repossessed cars.

Inclusion in the
Repayment Plan

The essence of Chapter 13 lies in crafting a court-approved repayment plan. This plan consolidates all outstanding debts, including missed car payments, into a single monthly payment. The debtor works with the court and creditors to establish a feasible plan based on income, expenses, and the amount owed.

Addressing Missed

The repayment plan allows debtors to catch up on missed car payments over the course of the plan. The automatic stay protects the debtor from immediate repossession, giving them time to address arrears and work towards retaining the vehicle.

Affordable Monthly

The repayment plan is designed to be affordable, taking into account the debtor's income and necessary living expenses. This allows for a more manageable approach to resolving financial challenges, including catching up on past-due car payments.

Completion of the
Repayment Plan

Successful completion of the Chapter 13 repayment plan is critical for retaining the repossessed car. Once the plan is completed, the debtor receives a discharge, which may include the remaining balance on unsecured debts, offering a fresh financial start.

Consultation with
an Attorney

Navigating Chapter 13 and reclaiming a repossessed car involves legal complexities. Consulting with a bankruptcy attorney is highly advisable. Our attorney can guide the debtor through the process, ensure the repayment plan aligns with their financial capabilities, and advocate for their rights.

Chapter 13 offers a realistic pathway for to recover repossessed cars while managing overall financial obligations. Seeking legal advice ensures a comprehensive understanding of the process and increases the likelihood of a successful outcome.

Our Expertise 

Dealing with repossession after bankruptcy can be tricky, but we've got you covered at USADebt. Our team has a deep understanding of bankruptcy laws, especially Chapters 7 and 13. We'll customize solutions based on your situation, whether it's missed payments, talks with lenders, or getting back seized assets. With us, you get straightforward guidance that puts your financial well-being first.


With a reputation of excellence spanning over 30 years, our firm has been renowned for its vast expertise in bankruptcy cases. We understand each client's unique situation, and our knowledgeable attorneys apply a personalized approach to address specific financial challenges.

FAQs on Repossession After Bankruptcy

Can I Lose My Car Even If I've Filed for Bankruptcy?

While filing for bankruptcy initiates an automatic stay, temporarily halting repossession, the outcome depends on factors such as the bankruptcy chapter (Chapter 7 or Chapter 13) and your ability to address missed payments.

How Does Chapter 7 Impact Car Repossession?

Chapter 7 focuses on liquidating assets to discharge debts. While it provides a temporary pause through the automatic stay, retaining a car often depends on exemption status, reaffirmation agreements, or surrendering the vehicle.

Will Chapter 13 Stop My Car From Being Repossessed?

Yes, Chapter 13 provides a structured process to catch up on missed payments and retain your car. The court-approved repayment plan allows you to address arrears over three to five years, preventing immediate repossession.

Can I Get a Repossessed Car Back after Bankruptcy?

Reclaiming a repossessed car is more feasible under Chapter 13, where a repayment plan is created. Chapter 7 doesn’t have a structured process for reclaiming vehicles, and success depends on negotiation and agreement with the lender.

What If My Car is Sold Before Filing for Bankruptcy?

 If your car is sold before filing for bankruptcy, especially under Chapter 7, it becomes challenging to recover it. Filing before the sale provides a better chance of preventing repossession and working towards a solution.