A New Jersey resident may get their repossessed auto back, by filing a chapter 13 bankruptcy case, if the auto was repossessed due to a loan default. However, there are general conditions for the return of the vehicle. Typically, the auto may be save at any time prior to the sale.
The debtor must file a chapter 13 bankruptcy petition, which provides a feasible plan indicating payment of the loan arrears, in addition to the future loan payments. The petition must reflect an ability to make such payments, by way of a budget. Additionally, the debtor must provide proof of adequate auto insurance that covers the finance company in the event of damage.
In general, the finance company will allow the debtor to obtain possession of the vehicle, without upfront payment for towing and storage fees. Such fees are typically paid through your bankruptcy plan.
The auto is typically released after the bankruptcy petition is filed and the necessary bankruptcy and insurance information is provided to the finance company. However, the debtor must travel to pick up the vehicle at the storage lot. The auto’s are generally stored in New Jersey.
Robert Manchel, is a New Jersey attorney that limits his practice to bankruptcy law. He may be contacted at 866 535 5655.