With the large number of bankruptcy filings these days, there are many misconceptions when it comes to keeping property. Many individuals in the process of filing bankruptcy think they'll get to keep their car even if they don't make their payments. As any bankruptcy attorney will tell you, if you don't pay for it, you can't keep it. Same rules apply to automobiles, if you don't make your car payment, unless you've filed for bankruptcy, at some point the creditor holding the title is likely to repossess the car. The automatic stay prohibits a creditor from repossessing a car during the bankruptcy filing. If an individual is not paying the payments on a secured piece of property, the creditor can ask the court for a relief of stay then proceed with the repossession. When someone is in the process of filing bankruptcy and has not yet filed with the court, they are not under the protection of the automatic stay and are fair game to collection attempts including repossession.
If a creditor repossesses the vehicle before the debtor can get the bankruptcy filed with the court it doesn't necessarily mean they will be able to recover the car just by filing bankruptcy. If this happens, it is best to immediately contact your bankruptcy attorney to see if it's possible to work something out with the creditors and retrieve the car. Most creditors don't want cars back and if they haven't sold it already there's a good chance you will be able to get it back. The creditor knows that they won't be able to recover any of the deficiencies or damages from the repossession because they know the debtor is filing bankruptcy and all liability will be wiped out on the vehicle. It would be in their best interest to get the debtor to reaffirm the debt and return the vehicle to them and continue making the payments. The downside to this whole situation is it's going to cost you. First of all, if you're in the process of filing bankruptcy you're already having financial problems. You'll need to come up with the money to pay your bankruptcy attorney, Court filing fees, mandatory credit counseling courses, and now with the addition of the repossession, probably all back payments along with proof of insurance, to get caught up before the creditor will release the vehicle.
When it comes down to it, if you're planning on filing bankruptcy and are in danger of having your car repossessed, move quickly and get it filed before they come and pick it up. It's always good advice to be proactive when it comes to finances, don't wait until the last minute or it might be too late. Being in this situation is no fun, but facing it head on will help take the sting out of it and allow you to get a fresh start much quicker. Before your financial troubles get too bad always consult with a bankruptcy attorney so you can protect as much property as possible. Filing bankruptcy was created by Congress to give hard-working, good people a fresh start. Don't bury your head in the sand thinking it will go away, move quickly and stop any further financial damage.
If a creditor repossesses the vehicle before the debtor can get the bankruptcy filed with the court it doesn't necessarily mean they will be able to recover the car just by filing bankruptcy. If this happens, it is best to immediately contact your bankruptcy attorney to see if it's possible to work something out with the creditors and retrieve the car. Most creditors don't want cars back and if they haven't sold it already there's a good chance you will be able to get it back. The creditor knows that they won't be able to recover any of the deficiencies or damages from the repossession because they know the debtor is filing bankruptcy and all liability will be wiped out on the vehicle. It would be in their best interest to get the debtor to reaffirm the debt and return the vehicle to them and continue making the payments. The downside to this whole situation is it's going to cost you. First of all, if you're in the process of filing bankruptcy you're already having financial problems. You'll need to come up with the money to pay your bankruptcy attorney, Court filing fees, mandatory credit counseling courses, and now with the addition of the repossession, probably all back payments along with proof of insurance, to get caught up before the creditor will release the vehicle.
When it comes down to it, if you're planning on filing bankruptcy and are in danger of having your car repossessed, move quickly and get it filed before they come and pick it up. It's always good advice to be proactive when it comes to finances, don't wait until the last minute or it might be too late. Being in this situation is no fun, but facing it head on will help take the sting out of it and allow you to get a fresh start much quicker. Before your financial troubles get too bad always consult with a bankruptcy attorney so you can protect as much property as possible. Filing bankruptcy was created by Congress to give hard-working, good people a fresh start. Don't bury your head in the sand thinking it will go away, move quickly and stop any further financial damage.
The author started FilingBankruptcyNow.Com which is a website that helps individuals with debt problems by putting them in touch with a local bankruptcy attorney that specializes in filing bankruptcy under Chapter 7 and Chapter 13 bankruptcy. Check our website for more answers to bankruptcy questions and ideas on how to have a debt free future.
