Legal Question in Credit and Debt Law in Wisconsin

Re: Court summons for car loan

A chapter 13 bankruptcy will allow you to retain the vehicle and cure the default so long as you maintain private insurance on the vehicle and make all your payments under a confirmed chapter 13 plan. If you read your summons carefully, it will generally describe what the loan company considers a default, which probably has nothing to do with whether or not the loan is now current. Default in a consumer credit transaction is a highly technical term, which requires nothing more than continuing to remain behind following the expiration of the "cure" period. If what they say is proven true (or if you don't contest it), the lender will still be entitled to the judgment of replevin regardless of your making up the missed payments, which entitles them to take your vehicle any time they want without any further court action. This is not to say that they necessarily will do so--you still might be able to negotiate with them. You should really be represented in such a matter if you are not an expert in consumer law, as these cases are often full of unpleasant surprised for the unsophisticated.