Bankruptcy Attorney in Monterey Park, CA
Fast Debt Relief Solutions. For many Monterey Park families, the first sign of serious trouble is a car loan that has fallen behind. Hedtke Law Group helps Monterey Park residents stop repossession, deal with the debt left after a repossession, and get relief from credit card and medical bills through Chapter 7 or Chapter 13 bankruptcy.
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Attorney Neil R. Hedtke · State Bar of California #273319 · about 3,000 bankruptcy cases filed since 2010 · West Point graduate and U.S. Army veteran · 5-star rated on Google
Stopping a car repossession
A lender can repossess a car after a missed payment, often without warning. If the car has not been taken yet, filing bankruptcy triggers the automatic stay and the lender must stop. If it was taken recently, filing quickly may let you get it back, particularly in Chapter 13.
If the car is already gone and sold, the lender usually claims a deficiency: the difference between the loan balance and the auction price, plus fees. That deficiency is unsecured debt, and in Chapter 7 it is typically discharged along with credit cards and medical bills. Our repossession page covers this in more detail.
Keeping your car in Chapter 13
Chapter 13 lets you catch up on missed car payments over the length of the plan. If you bought the car more than 910 days before filing, the loan may be reduced to the car’s current value in the plan, which can lower the monthly cost. The interest rate may also be adjusted. We run the numbers before recommending this route.
When Chapter 7 is the better fit
If your income is below the California median for your household size and you are current on the car, or you are ready to let the car go, Chapter 7 is usually faster and cheaper. Most cases close in a few months. California’s exemptions protect a limited amount of vehicle equity, household goods and retirement savings.
How the process works
- Free consultation. Bring the loan statement, any repossession notice, and recent pay stubs.
- We compare Chapter 7 and Chapter 13 for your car, your income and your other debts.
- You complete credit counseling, we file, and the automatic stay stops the repossession or collection on the deficiency.
- You attend the meeting of creditors. In Chapter 13 you begin plan payments; in Chapter 7 the discharge usually follows within a few months.
Your attorney
Neil R. Hedtke graduated from the United States Military Academy at West Point in 1992, served five years as a U.S. Army Engineer Officer, and earned his law degree at the University of La Verne College of Law. He was admitted to the California bar in 2010 and has filed about 3,000 bankruptcy cases since. Read more about Mr. Hedtke or verify his license on the State Bar of California website.
Car problems are time sensitive. If a repossession is scheduled or has just happened, tell us when you call so we can look at your case first.
Questions we hear from Monterey Park residents
Can bankruptcy stop my car from being repossessed?
Yes, if you file before the car is taken. The automatic stay requires the lender to stop collection, including repossession. What happens next depends on whether you file Chapter 7 or Chapter 13.
Do I still owe money after my car was repossessed?
Usually yes. The lender can claim the deficiency between what you owed and what the car sold for. That deficiency is typically discharged in Chapter 7.
Can I keep my car in Chapter 7?
Often yes, if you are current on the loan and the equity is protected by California exemptions. You may be asked to reaffirm the loan or keep paying it.
What is the 910-day rule?
In Chapter 13, a car loan on a vehicle bought more than 910 days before filing can sometimes be reduced to the car’s current value. Newer loans generally must be paid in full through the plan.
Getting to our office from Monterey Park
From Monterey Park, take Atlantic Boulevard or Garfield Avenue north, then Huntington Drive east into Arcadia. The drive usually takes about 20 to 25 minutes. The Metro A Line Arcadia Station is near the office.
Hedtke Law Group
255 E Santa Clara St, Suite 210, Arcadia, CA 91006
Phone: (626) 593-1558
Monday to Friday 9:00 a.m. to 5:00 p.m., Saturday 10:00 a.m. to 1:00 p.m.
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Related help
We also serve nearby Alhambra and Rosemead. Start with our main bankruptcy options page or read about Chapter 13.