How to Stop a Car Repossession in Wisconsin

Hire a Milwaukee Bankruptcy Attorney to Protect Your Possessions

Stop Car Repossession in the Milwaukee AreaAt The Law Office of Steven R. McDonald, LLC, we understand that facing car repossession can be a stressful and overwhelming experience. If you’re struggling to keep up with your car payments and are worried about losing your vehicle, filing for bankruptcy might be the solution you need. Here’s how Chapter 7 and Chapter 13 bankruptcy can help stop car repossession and provide you with a fresh financial start.

What is Car Repossession?

Car repossession occurs when you default on your car loan payments, allowing the lender to take back your vehicle. This can happen quickly if you miss payments or violate the terms of your loan agreement. Repossession not only deprives you of your vehicle but also impacts your credit score and overall financial stability.

Contact us today to...

  1. Get expert advice and a guiding hand
  2. Heal your financial wounds
  3. Restore a sound financial future
Milwaukee Chapter 13 bankruptcy attorney consultation

Chapter 7 Bankruptcy: Liquidation and Fresh Start

Chapter 7 bankruptcy, also known as liquidation bankruptcy, can help you stop car repossession by discharging many of your unsecured debts, which can free up resources to catch up on your car loan payments.

How Chapter 7 Can Help

  • Automatic Stay: Once you file for Chapter 7 bankruptcy, an automatic stay goes into effect immediately. This stay halts all collection activities, including car repossession. Creditors must stop their efforts to collect the debt, giving you temporary relief.
  • Discharge of Unsecured Debts: Chapter 7 can discharge many of your unsecured debts, such as credit card debt, medical bills, and personal loans. With these debts eliminated, you may have more disposable income to address your car loan arrears.
  • Redeem the Vehicle: In some cases, you can redeem your vehicle by paying its current market value in a lump sum. This can be advantageous if your car’s market value is significantly lower than the amount you owe on the loan.
  • Reaffirmation Agreement: You can enter into a reaffirmation agreement with your lender, agreeing to continue making payments on your car loan despite the bankruptcy. This keeps you in possession of the vehicle as long as you stay current with your payments.


  • Eligibility: To qualify for Chapter 7 bankruptcy, you must pass the means test, which evaluates your income level relative to your debts.
  • Non-Dischargeable Debts: Chapter 7 will not discharge certain types of debts, such as child support, alimony, and some tax obligations.

Chapter 13 Bankruptcy Repayment Plan

Chapter 13 bankruptcy allows you to reorganize your debts into a manageable repayment plan while keeping your assets, including your car. This type of bankruptcy is often referred to as a "wage earner’s plan."

How Chapter 13 Can Help

  • Automatic Stay: Similar to Chapter 7, filing for Chapter 13 bankruptcy triggers an automatic stay that halts car repossession and other collection actions.
  • Repayment Plan: Under Chapter 13, you propose a repayment plan to pay back your creditors over three to five years. This plan includes catching up on missed car payments, allowing you to retain possession of your vehicle.
  • Lower Payments: Depending on your circumstances, you may be able to lower your car payments through your repayment plan, making it easier to afford them.
  • Cramdown Option: In some cases, you may qualify for a cramdown, which reduces the amount you owe on your car loan to the current value of the vehicle. This can significantly lower your monthly payments and the total amount owed.


  • Commitment: Chapter 13 requires a long-term commitment to a repayment plan, which lasts between three to five years.
  • Regular Income: You must have a regular income to qualify for Chapter 13, as it relies on your ability to make consistent payments under the plan.

Which Option Is Right for You?

Deciding between Chapter 7 and Chapter 13 bankruptcy depends on your specific financial situation and goals. At The Law Office of Steven R. McDonald, LLC, we will carefully review your circumstances and help you determine the best course of action to stop car repossession and achieve financial stability.

Serving the Greater Milwaukee Area

At The Law Office of Steven R. McDonald, LLC, we proudly serve clients throughout the greater Milwaukee area, including Oak Creek, Franklin, Greendale, Cudahy, New Berlin, Hales Corners, Racine, Muskego, and South Milwaukee. If you're facing car repossession, contact us for expert legal assistance and protect your vehicle today.

Contact Us for a Free Consultation

Facing car repossession doesn’t mean you’re out of options. Contact The Law Office of Steven R. McDonald, LLC today for a free consultation. Attorney Steven R. McDonald has over 15 years of experience helping clients navigate the complexities of bankruptcy law. We’ll provide you with clear, expert guidance to help you protect your vehicle and get back on track financially.

Don’t wait until it’s too late. Reach out to us today and take the first step towards securing your financial future.
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