Bankruptcy Lawyer | Will My Car Get Repossessed?
Bankruptcy Lawyer | Going through a vehicle repossession is a tough ordeal, and losing one’s means of transportation can make it harder to stay employed and debt free. Fortunately, those facing repo action may be able to obtain help from a bankruptcy lawyer who knows about the different types of filing options.
Chapter 13 and Chapter 7
Two forms of bankruptcy filing, Chapter 13 and Chapter 7, include something called an automatic stay. As soon as a debtor files for one of these bankruptcies, their creditors are forbidden from continuing or commencing collection actions until the filing is complete.
Does the Automatic Stay Stop All Repos?
Automatic stays are helpful in a range of situations. For instance, individuals who file Chapter 13 must submit plans for how they’ll repay their debts, but they usually don’t have to worry about their cars being repossessed while their proposals are in the approval process.
It’s important to remember, however, that filers might lose such protection if they don’t make minimal adequate protection payments during the approval time frame. A bankruptcy lawyer may recommend paying the regular car payment as a precautionary measure.
After approval, debtors can retain repo protection if their plan includes details on how they’ll resolve their loan’s back payments and they keep up with these terms. Some debtors are even able to recover a car that was repossessed just before their filing if their bankruptcy proposals demonstrate good planning.
Which Bankruptcy Type Is Best for Avoiding Repossession?
Not all automatic stays are equal. Whereas Chapter 13 doesn’t involve property being liquidated, or sold by a trustee to repay debts, many Chapter 7 filings include such actions. The wrong type of filing might temporarily protect a debtor from repossession yet fail to stop them from eventually losing their car.
Each situation is unique. Bakersfield, CA, debtors may find it best to consult with a bankruptcy lawyer before choosing a filing option. To discover more, visit dmaxlaw.com.
Sources:
http://www.nolo.com/legal-encyclopedia/car-repossession-chapter-13-bankruptcy.html
http://www.nolo.com/legal-encyclopedia/how-bankruptcy-stops-creditors-automatic-29723.html
http://www.alllaw.com/articles/nolo/bankruptcy/which-type-chapter-7-chapter-13.html
Our office can assist you in determining whether bankruptcy is the right choice for you, and which chapter under the Bankruptcy Code would provide you with the most relief. To schedule a free consultation with a knowledgeable Bakersfield bankruptcy lawyer about filing a Chapter 7 bankruptcy in Kern County, please call our office today at 661-888-4335 .