When you file for bankruptcy, your car, other forms of vehicles, recreational investments (such as boats, snowmobiles, campers, and a jet ski) are essentially treated similar as a home foreclosure. If you have been served a notice of repossession by your lender, there are things that you may be able to do to stop the repossession, delay the repossession, or even give you the time to attempt to refinance the item of value in a manner that would be affordable to you following a bankruptcy.
One of these actions available to many people seeking to save their vehicles is to file for Chapter 7 or Chapter 13 personal bankruptcy.
How Chapter 7 Bankruptcy Can Save Your Vehicle From a Repossession:
When a personal Chapter 7 bankruptcy case is filed, an automatic "stay" is issued to all creditors. This "stay" stops all debt collections actions, debt litigation, and yes, repossessions as well. While the "stay" is only temporary, pending the outcome of the bankruptcy claim, the Chapter 7 bankruptcy can help you in a few ways:
How Chapter 13 Bankruptcy Can Save Your Vehicle From a Repossession:
When a personal Chapter 13 bankruptcy case is filed, an automatic "stay" is issued to all creditors. This "stay" stops all debt collections actions, debt litigation, and yes, repossessions as well. The Chapter 13 bankruptcy can help you in a few ways:
While an automatic "stay" is issued to all creditors involved in the bankruptcy, the stay in a Chapter 7 is only temporary, and following the bankruptcy, the creditor will still want their money if the debt has not been discharged in the bankruptcy, and may resume their debt recovery or repossession efforts.
If you do not have the money necessary to stop the repossession or have not made an agreement with the creditor that will stop the repossession process, the repossession will occur if the lender wants it to happen.
Even when this happens, you still have options and rights that must be protected.
Brian Hizer and Edward Schimmel have the experience and resources to effectively guide you through the bankruptcy legal process. We always strive to provide the highest standard of legal representation to aggressively pursue your bankruptcy legal goals.
If you require experienced legal advice and representation from a qualified Bankruptcy Law attorney (lawyer), please call our offices to schedule a confidential legal consultation.