Unfortunately, if you are not up to date with your car payments, the lender has every right to repossess the vehicle at any time without giving you notice. However, if you file for bankruptcy, the repossession may cease and you may even have the opportunity to get your vehicle back. Once you learn more about the different types of bankruptcy, you will have a better understanding of how the combination of repossession and bankruptcy is not the definitive on whether or not you can keep your vehicle.
Repossession and Bankruptcy : Automatic Stay
When you file for bankruptcy, your creditors are informed of the automatic stay that has been applied to your case. An automatic stay prevents your creditors from continuing to contact you regarding any collections while your case is going through the court process. Creditors will not be able to call you, repossess property or foreclose on any property. There are only a few exceptions to the automatic stay. In most circumstances you will not have to worry about repossession and bankruptcy at the same time.
The Bank Has Not Repossessed Your Car
Just because the bank has not repossessed your vehicle yet, don’t assume the lender will not repossess the vehicle. If you know that the bank could repossess your vehicle at any time and you are not able to catch on payments, you should schedule a consultation with an experienced bankruptcy attorney.
The attorney will explain your options, Chapter 7 and Chapter 13. Chapter 7 will provide you with a temporary grace period to catch up on your payments. Chapter 13 will allow you to repay the loan over a period of time. Depending on the court’s decision, you may have up to five years to pay the lender.
Repossession and bankruptcy are two words that few people want to use to describe their financial situation. However, handing your case over to a bankruptcy attorney will help you avoid further financial complications. And you can get your life back on track.
Are you having problems making your monthly payments to your car lender? And, are you worried you may lose your wheels? Vehicle owners in North Georgia can contact the experienced attorneys at Douglas Jacobson Law Firm for a free consultation.