Jump to Navigation
How Can We Help?

Bold labels are required.

Contact Information

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.


Los Angeles Car Repossession Lawyer

Los Angeles Area Debt Relief Attorneys Helping Californians Avoid Automobile Repossession

Helping Since 1970

Many people worry about losing their homes, vehicles or other personal property if they file bankruptcy. In fact, bankruptcy can help you avoid car repossession. At the Law Offices Of Hagen & Hagen, we help clients avoid embarrassing repossessions by advising them on their debt relief choices and helping them file bankruptcy, if necessary.

Bankruptcy Law And Car Repossessions

The bankruptcy law changed in 2005, giving debtors three options for car payment relief:

1. Redemption: If you pay the lienholder the fair market value of the vehicle in a lump sum payment, you can discharge the remaining debt.

2. Voluntary repossession: One way to achieve debt relief is to surrender your car to the lender after you file bankruptcy. This option is available if you are financing or leasing a car. After surrendering the vehicle, the lender can sell it at auction but will not be able to seek from you the difference between the balance of the obligation and the proceeds generated by the auction sale.

3. Reaffirm the debt: Another way to avoid car repossession is to receive a court approved contract that assures you will pay the car loan, despite it being a dischargeable debt. Some companies, such as Ford Motor Credit and Chrysler Financial, are very particular about debt reaffirmation. If you do not reaffirm the debt during bankruptcy, and the underlying financing contract contained a provision that defines bankruptcy as an event of default, the lienholder may repossess the vehicle during or after the bankruptcy case, even if you are current on your payments.

At the Law Offices Of Hagen & Hagen, a bankruptcy lawyer will explain in depth the differences between voluntary car repossession and debt reaffirmation. We will help you decide which of the options best fits your financial needs.

If you defaulted on a car loan, and are worried about losing your vehicle, contact the Law Offices Of Hagen & Hagen to discuss your situation with certified bankruptcy attorney Jeffrey Hagen.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.