Keep your vehicle
Stop a Car Repossession in Utah
Losing your car can mean losing your way to work. Filing bankruptcy stops a lender from repossessing your vehicle, and Chapter 13 can let you catch up on missed payments over time. In some cases it can even lower what you owe on the loan.
The short version
Keep your car, catch up on missed payments and, in some cases, lower the loan balance.
Before a repossession
If you are behind and expect a repossession, filing bankruptcy prevents the lender from taking the vehicle without court permission. In Chapter 13, the past-due amount can be spread over the plan while you continue regular payments.
After a repossession
If the vehicle has already been taken, act quickly. Depending on the timing and the lender, it may still be possible to recover it through a Chapter 13 filing before it is sold. If you decide not to keep the vehicle, bankruptcy can eliminate the deficiency balance the lender would otherwise try to collect after the sale.
Reducing an underwater car loan
In Chapter 13, a car loan for a vehicle purchased more than 910 days before filing can sometimes be reduced to the vehicle's current value, with a potentially lower interest rate. Whether this works for you depends on the purchase date and loan details.
Stop Repossession: common questions
Can I get my car back after it has been repossessed?
Possibly, if you act before the lender sells it. A Chapter 13 filing can require the lender to return the vehicle in many circumstances. Contact us immediately if your car has been taken.
Do I have to give up my car in Chapter 7?
Usually not. If you are current on the loan and your equity is protected by Utah exemptions, you can typically keep the vehicle and continue paying.
This page is general information, not legal advice, and reading it does not create an attorney-client relationship. Results depend on the facts of each case. See our full bankruptcy FAQ.
Related services
- Chapter 13 BankruptcyKeep your home and car with one affordable three-to-five-year plan, and stop foreclosure.
- Chapter 7 BankruptcyWipe out credit cards, medical bills and personal loans, usually in a few months.
- Stop ForeclosureHalt a trustee's sale and catch up on missed mortgage payments while you stay in your home.
Talk to a Utah bankruptcy attorney for free
Every situation is different. A free consultation is the fastest way to learn which option fits yours. Ask about $0-down options.