A PC contacted me. He had a car repo’d this last weekend. He owes $14k on it, the KBB trade is $10k and the bank will probably get $8k at auction for it. He wants to know if there is any way to get the car back. He asked the bank and they said no, due to a history of late payments. His financial circumstances (other total debt) make it advantageous for him to file Chapter 7 but he is curious if anything can be done to get the car back. It is property of the estate and necessary for an effective reorganization … assuming the Chapter 13 is filed quickly. This depends completely upon local law of repossession and redemption. In Florida, the debtor has no property interest in the vehicle after repossession, and cannot have it returned on filing bankruptcy. Not so in some other states, like Texas. In Dallas, it’s not too hard to get the car back if the Chapter 13 bankruptcy is filed quickly enough.
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