I may need to declare bankruptcy. One of the debts that I’m having difficulty paying is my car loan. If I declare bankruptcy, will that stop the lender from repossessing the car if I can’t make the payments?
Can a car be repossessed during bankruptcy?
Talk to a Bankruptcy Attorney
Enter Your Zip Code to Connect with a Lawyer Serving Your Area
Enter Your Zip Code to Connect with a Lawyer Serving Your Area
Related Ads
Question:
This article is provided for informational purposes only. If you need legal advice or representation,
click here to have an attorney review your case .
click here to have an attorney review your case .
Get Informed About Bankruptcy Law
Popular Topics
Chapter 7 Bankruptcy - Learn about the most common type of Bankruptcy.
Chapter 13 Bankruptcy - Options for homeowners and filers with high income.
Process of a Bankruptcy Case - Find out what's involved in filing a bankruptcy case.
Property and Exemptions in Bankruptcy - Find out how your property is (or is not) protected.
Your Home in Bankruptcy - If you're a homeowner, find out what happens to your house.
Your Car in Bankruptcy - Learn about your options to keep (or surrender) your car.
Using a Bankruptcy Lawyer - Find out if you need a lawyer and how to pick a good one.
Chapter 13 Bankruptcy - Options for homeowners and filers with high income.
Process of a Bankruptcy Case - Find out what's involved in filing a bankruptcy case.
Property and Exemptions in Bankruptcy - Find out how your property is (or is not) protected.
Your Home in Bankruptcy - If you're a homeowner, find out what happens to your house.
Your Car in Bankruptcy - Learn about your options to keep (or surrender) your car.
Using a Bankruptcy Lawyer - Find out if you need a lawyer and how to pick a good one.
Get Professional Legal Help
The content of this website is provided for informational purposes only, and should not be construed as legal advice. Always consult with an attorney regarding any legal issues. If you live in Alabama, Florida, Missouri, New York or Wyoming, please click here for additional information.
Recent Articles | Terms and Conditions | Privacy Policy | Site Map Copyright © 2012 ExpertHub.com. All rights reserved.
LA-WS5:0.9.17.120126.12696+
Answer: (1)
Unfortunately, a car can be repossessed during bankruptcy if you don’t make arrangements to keep paying the debt. Bankruptcy primarily acts to wipe out unsecured debts—debts such as credit card debt, where there is no property or asset acting as collateral for the debt. When there is a secured debt, the creditor retains the right to repossess it and use the property to satisfy the debt, though the creditor may then be unable to sue for any amount owing above and beyond the value of the collateral.
The automatic stay will prevent an immediate repossession of your car, but the lender is likely to ask the court to remove the stay and allow repossession. If you can't make the payments, the court will probably allow the lender to proceed with the repossession.
There are ways you can keep your car in bankruptcy, however. They differ depending on which type of bankruptcy you file -- Chapter 7 or Chapter 13. You can learn more about these options in Your Car in Bankruptcy.
Posted by Staff Attorney on 09 Apr 2010