Chapter 13 Bankruptcy Lawyer
When you are filing for Chapter 13 bankruptcy, you are likely wondering what might happen to your different assets and if you will need to sell things or if you can keep certain items. One of the biggest questions that many people ask is whether they will be able to protect their car from repossession or if filing for Chapter 13 bankruptcy can help you get your car back after it has already been taken. It is possible that filing for Chapter 13 bankruptcy can help protect your car, and an attorney goes into more detail about this type of bankruptcy and what it means for repossession. For more information or if you would like to set up an appointment to meet with one of our bankruptcy attorneys, please call our office now.
Will filing for Chapter 13 bankruptcy protect my car?
Yes, it is possible that filing for Chapter 13 bankruptcy can help save your car because a court will put in place something called an automatic stay. When they do this, it gives you time to begin creating a plan for your debt without creditors coming after your different assets. This can allow you and your attorney the time you need to begin figuring out the best ways to work on your debt and it will stop creditors from repossessing your car. It is important to note that this type of bankruptcy does not halt child support payments and it is possible for a creditor to file a motion with the court to have the automatic stay lifted for them.
How Chapter 13 Bankruptcy Protects Your Car
There are typically two ways that filing for this type of bankruptcy can help. First, if the lender has not already repossessed your car at the time of filing for bankruptcy, then filing for Chapter 13 will put the automatic stay in place (as mentioned above). Once this happens, the lender cannot repossess the car until you and your attorney submit your repayment plan to the judge. Once you have done this, the automatic stay is lifted. If you come up with a plan that repays any debt you already owe on your car and allows you to stay current on your car payments in the future, the lender cannot legally repossess your car.
The second scenario may be if the lender has already repossessed your car before you had the chance to file for bankruptcy. When this is the case, you must work with your attorney very quickly and you may have the option of getting your car back. To do this, you must devise a repayment plan of any accrued debt and the future payments to show that you can pay it off.
If you are worried about a lender repossessing your car and would like to file for Chapter 13 bankruptcy, you should speak with a bankruptcy attorney as soon as possible to see how they can help you with your situation. Please call now to schedule your appointment.
Source: Chapter 13 Bankruptcy Lawyer Bloomington, IL, Pioletti & Pioletti