Repossession Law in Albuquerque, New Mexico

Vehicle RepossessionFalling behind in your payments on your vehicles or other secured debts may have more severe consequences, including repossession.

If you are behind on your vehicle payments, repossession laws allow your creditors to try to collect their collateral at any time and from any place. You may be at home or at work. Losing your car may lead to even more serious financial consequences as you may lose your ability to get to and from work.

Call 866-501-8500 to learn how to prevent vehicle repossession today.

Repossession laws may provide your creditors with rights, but they provide you with certain repossession rights as well. A free initial consultation with our Albuquerque bankruptcy lawyers can provide you with the kind of valuable legal advice you need to avoid repossession.

How Chapter 7 Bankruptcy Prevents Vehicle Repossession

Chapter 7 bankruptcy can help you prevent repossession. If your vehicle has already been repossessed but not sold, you may be able to have it restored upon filing bankruptcy. Under Chapter 7, you have the following options:

  1. Surrender your vehicle. You’ll no longer owe payments, and your creditor will not be able to seek any judgments or continue collection activities after the vehicle has been sold.
  2. Reaffirm the debt. This in effect makes the debt nondischargeable. You will be responsible for continuing to make payments, but your creditors may be willing to work with you by offering a reduced interest rate or other more favorable terms. However, you will be exempt from the protection that bankruptcy offers. In other words, if you default on the vehicle, the creditor can still utilize repossession and pursue any outstanding debt.
  3. Redeem the debt. You may be able to keep your vehicle by paying it off in a lump sum.
  4. Retain the vehicle and continue to make monthly payments. While this final option does not fall under repossession laws, it may allow you to keep your car without having to create a new contract.

How Chapter 13 Bankruptcy Prevents Vehicle Repossession

Not everyone facing repossession will qualify for Chapter 7 bankruptcy. However, Chapter 13 bankruptcy also provides you with a number of options, including:

  1. Surrendering the vehicle.
  2. Continuing to pay for the vehicle outside your official Chapter 13 repayment plan.
  3. Paying for the vehicle in full through the repayment plan. This may allow you to reduce your interest rate or even extend your payments.
  4. If you financed your vehicle more than 910 days before filing your bankruptcy, you may have the option of paying the fair market value of the car to the creditor, also known as cram down.

If you have fallen behind in your vehicle payments and fear repossession, contact the Albuquerque bankruptcy attorneys at Melwani Law today for a free initial consultation to learn more about your repossession rights.