Stop the Repo — or Reverse It
The automatic stay halts a repossession the moment you file. If the car was already taken but not yet sold, filing can often compel the lender to return it (a 'turnover'), because the vehicle is now property of the bankruptcy estate. Speed matters here — the window is before the sale.
The 910-Day Cramdown
In Chapter 13, the age of your loan changes everything. If you bought the car for personal use more than 910 days (about two and a half years) before filing, you may be able to 'cram down' the balance to the car's fair market value and pay only that through your plan — sometimes at a reduced interest rate. Loans newer than 910 days generally must be paid in full, but can still be restructured into an affordable plan.
Keep It Without the Pressure
Either way, Chapter 13 lets you catch up the arrears over three to five years while you keep driving the car and stay current going forward. The repo calls stop, and the deficiency-balance trap after a surrender disappears.
What to Do
Whether your car was just repossessed or you're about to fall behind, the move you make this week decides whether you keep it. A free Caffeine Law consult tells you if the 910-day rule and the stay can save your vehicle.
Caffeine Law — free consult | Michael Benavides, Esq., CA Bar No. 270714 | 707-362-4166 | attorneymichaelbenavides.com
ATTORNEY ADVERTISING. Caffeine Law is a trade name of the law practice of Michael Benavides, Esq., California State Bar No. 270714. General information only — not legal advice, and no attorney-client relationship is formed by reading this. Bankruptcy outcomes depend on your specific facts; exemption amounts, the median-income figures, and deadlines change, so verify current numbers. Prior results do not guarantee a similar outcome.
