The question of car repossession is a perfect example of why distressed debtors should talk to bankruptcy attorneys sooner rather than later. If you have received notice your car loan is past due and you cannot bring it up to date, you may be at risk of having the car repossessed by the car loan lender.
Stop Car Repossession
Fortunately, bankruptcy is ideal for handling this very situation. Once you file bankruptcy, the automatic stay will go into effect. The automatic stay puts creditors on notice they are not allowed to attempt to collect on debts — including repossessing cars.
Once you file your case and the automatic stay goes into effect you will not need to worry about your car being taken in the middle of the night. What can be done at this point depends on whether you file a Chapter 7 or Chapter 13, but either chapter will allow you some breathing room (exemptions) so you can best determine what is in your best interest. It may be in your best interest to reaffirm the car loan and continue paying. However, it may also be in your best interest to surrender the vehicle without the worry of being responsible for a loan deficiency on the car loan.
The Attorneys At Bird & Van Dyke Can Help
Talk to a lawyer about Chapter 7 bankruptcy, Chapter 13 bankruptcy, lien stripping and car repossessions. Contact Bird & Van Dyke in Stockton. Car repossession? Attorneys at our California bankruptcy law firm can stop it by having you file bankruptcy as soon as possible.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.