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Can Bankruptcy Help Prevent My Car From Being Repossessed

If you are filing for bankruptcy and have missed car payments, it’s important to know that there are legal remedies that can be used to prevent your car from being repossessed. Both Chapter 7 and Chapter 13 bankruptcy laws include an “Automatic Stay” which prohibits lenders from repossessing your car during the bankruptcy proceedings. However, it’s worth noting that the stay is only temporary, and the lender can ask the court to remove it. In order to prevent repossession, it’s best to stay in contact with your car lender through a bankruptcy attorney and to come up with a modified repayment plan. This can include reduced interest rates, a reduced balance, or renegotiated terms. Keep in mind that the lender’s primary goal is to get paid and they may be willing to work with you to avoid repossession. If your car has already been repossessed before the bankruptcy filing date, it’s important to contact a bankruptcy attorney as soon as possible to come up with a repayment plan.

Filing for bankruptcy can be a way to temporarily prevent your car from being repossessed, as the court will issue an “Automatic Stay” during the proceedings that prohibits the lender from repossessing your car. However, it’s important to keep in mind that the stay is only temporary and only applies during the bankruptcy proceedings. In order to prevent repossession, it’s important to make payments, make up missed payments, come up with a repayment plan, stay in contact with the lender through your attorney, and consider renegotiating the car loan or asking the court to approve a plan. If your car has already been repossessed before the bankruptcy filing date, it’s important to contact a bankruptcy attorney as soon as possible to come up with a repayment plan. A good bankruptcy attorney can help you understand your rights and work with the lender to find a solution that works for both parties.

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