What should I do if my car was repossessed? How?

You may have to file BK. Meet with a lawyer face to face to see what your options are.

File your bankruptcy.

I would be checking into whether you are vulnerable if this creditor sues you and obtains a court judgment. If you have no job, own no real estate, and your other belongings are below what is protected by state laws called exemptions, the creditor may be unable to force you to pay. This is known as being judgment proof.

After you become employed again, you should file for bankruptcy. It doesn't make sense to file now because you've got no income to protect.

I am assuming the creditor who held the auto loan that was secured by the car that was repossessed was the one who took your car. If you were delinquent with the payments, it is within their rights to repossess the vehicle. Now that you owe a deficiency balance on the auto loan (difference between what was owed to the creditor and the amount they were able to sell the car for), you have three options. First, you can contact the creditor and make payment arrangements to pay the amount owed in full. Second, you, or an attorney you retain, can contact the creditor to negotiate a settlement on the debt. Settlement could mean paying a fraction of what is owed in either a lump sum and/or in installment payments. Third, you can file a Ch. 7 or Ch. 13 bankruptcy, to either discharge the total amount owed without any repayment (Ch. 7) or repay a percentage of the unsecured debt over a 3-5 year period and discharge the unpaid percentage (Ch. 13). You should consult with an attorney that practices both debt settlement and bankruptcy. Those types of attorneys typically offer free consultations. By taking advantage of a free consultation, you can find out what your options are and get help deciding which options makes the most sense for you.

A bankruptcy will discharge the debt you owe for the deficiency on your car loan. You will have to examine your whole situation to see if filing a bankruptcy is worth it to you. If you don't want to file bankruptcy, you might be able to negotiate a settlement with the bank, or come to an agreement for payment terms. If you can't, the bank will likely seek a judgment, at which time it will be able to garnish wages, levy bank accounts, and so forth.