Car Repossession & Chapter 7 Bankruptcy

At The Buchalter Law Group, we understand how stressful it can be to manage debt when you are financially struggling. That is why we are here to assist clients who are considering bankruptcy by guiding them through each step of the legal process so they can get a fresh start on their finances. One of the common questions we are asked when clients consult with us is, “Can my car be repossessed if I file for chapter 7 bankruptcy?”

When a person files for chapter 7 bankruptcy, an automatic stay is placed on their car. This means your car lender can’t attempt to repossess your vehicle unless they obtain permission from the bankruptcy court. Once an automatic stay has been placed on your car, creditors have to cease their collection efforts and are no longer allowed to contact you.

If a car lender wants to repossess your vehicle, they have to file a motion with the court requesting the automatic stay be lifted. This requires the lender to prove that they are entitled to repossess the vehicle because you did not pay your entire debt on time. If a lender files a motion to repossess your car, you will have to respond to the court and seek a hearing to present your case.

Speak to our Dedicated Bankruptcy Lawyers Today

Are you considering bankruptcy but worried your lender will try to repossess your vehicle? If so, you need to consult with our team of experienced attorneys to discuss all of your options under the law. We can review the details of your situation and devise a strong legal strategy that will protect all of your interests and allow you to obtain debt relief.

Give us a call today at (321) 320-6088 to request your free case evaluation with an attorney at our law firm.

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