Car Repossession Attorney in Arcadia, CA

Fast Debt Relief Solutions. If you are behind on your car payments, your lender can repossess the car without going to court and often without warning. Filing bankruptcy before the car is taken stops the repossession. If the car has already been taken, acting fast can sometimes get it back, and if it has been sold, bankruptcy can usually wipe out the balance the lender says you still owe. Hedtke Law Group helps Arcadia and San Gabriel Valley drivers with all three situations.

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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

Before the car is taken

Filing Chapter 7 or Chapter 13 triggers the automatic stay, which requires the lender to stop all collection, including repossession. What happens next depends on the chapter:

Chapter 13 lets you catch up on missed payments over the plan. If you bought the car more than 910 days before filing, the loan may be reduced to the car’s current value, and the interest rate may be lowered.
Chapter 7 works if you are current or can get current. You can keep paying and reaffirm the loan, redeem the car by paying its current value in a lump sum, or surrender it and discharge the remaining debt.

If the car was just repossessed

Call immediately. California law generally requires the lender to send you a notice of intent to sell at least 15 days before selling the car, and many buyers have a right to reinstate the contract or redeem the car during that time. Filing Chapter 13 before the sale may also let you recover the car and pay the arrears through the plan. Every day matters, because once the car is sold, these options end.

If the car has already been sold

After an auction, the lender usually claims a deficiency: the gap between what you owed and what the car sold for, plus repossession and sale costs. That balance is unsecured debt, just like a credit card. In Chapter 7 it is usually discharged. In Chapter 13 it is paid a share based on your budget, and the rest is discharged at the end of the plan. If the lender has already sued you or is garnishing your wages for the deficiency, bankruptcy stops that too. See how bankruptcy stops collection.

Garnishments and bank levies

Lenders that win a judgment for a deficiency or other debt can garnish wages or levy a bank account. California generally limits ordinary wage garnishment to 20 percent of disposable earnings, or less for lower incomes. Filing bankruptcy stops a garnishment or levy, and money garnished in the 90 days before filing can sometimes be recovered.

How the process works

Call as soon as you miss a payment or receive a repossession or sale notice. Tell us if a repo is scheduled so we can review your case first.
Bring the loan contract, recent statements, any notice of intent to sell, and recent pay stubs.
We compare Chapter 7 and Chapter 13 for your car and your other debts and recommend the option that fits.
You complete credit counseling and we file. The automatic stay stops the repossession or collection on the deficiency.

Your attorney

Neil R. Hedtke graduated from the United States Military Academy at West Point in 1992 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. You work with him directly from the first consultation to the end of your case. Read more about Mr. Hedtke or verify his license on the State Bar of California website.

Common questions

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.

Can I get my car back after it was repossessed?

Sometimes. California generally gives you a notice period before the car is sold, and many buyers can reinstate or redeem during that time. Filing Chapter 13 before the sale may also let you recover the car. Call right away.

Do I still owe money after my car is repossessed and sold?

Usually yes. The lender can claim the deficiency between the loan balance and the sale price plus costs. That deficiency is usually discharged in Chapter 7.

What is the 910-day rule?

In Chapter 13, a car loan on a vehicle bought more than 910 days before filing can often be reduced to the car’s current value. Newer car loans generally must be paid in full through the plan.

Can I keep my car in Chapter 7?

Often yes, if you are current or can get current and the car’s equity is protected by California exemptions. You may reaffirm the loan or redeem the car by paying its current value.

Helpful guides

Our Arcadia 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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We help clients from Arcadia, Pasadena, Alhambra, Monterey Park, Rosemead, Temple City, San Marino, Duarte, Irwindale and Azusa.