Repossession Representation

When you file for bankruptcy, your car, other vehicles, recreational vehicles (such as boats, snowmobiles, campers, and jet skis) are essentially treated similarly as a home foreclosure. Suppose you have been served a notice of repossession by your lender. In that case, there are things that you may be able to do to stop the repossession, delay the repossession, or even give you the time to attempt to refinance the item of value in a manner that would be affordable to you following a bankruptcy.

One of these actions available to many people seeking to save their vehicles is to file for Chapter 7 or Chapter 13 personal bankruptcy.

How Chapter 7 Bankruptcy Can Save Your Vehicle From a Repossession

When a personal Chapter 7 bankruptcy case is filed, an automatic "stay" is issued to all creditors. This "stay" stops all debt collection actions, debt litigation, and, yes, repossessions as well. While the "stay" is only temporary, pending the outcome of the bankruptcy claim, the Chapter 7 bankruptcy can help you in a few ways:

     *  Give you the ability to have certain debts discharged, enabling you to afford the current debt relating to the

         repossession going forward. This can put an end to the repossession process entirely.

     *  Give you time to restructure, refinance or modify your current debt, thus stopping the repossession process.

     *  Allow you to have the debt discharged by including the item that was being repossessed in your bankruptcy (if

         this occurs, you will lose the item that was being repossessed).

     *  Give you time to sell the item that is being repossessed for a minimum of what is owed.

How Chapter 13 Bankruptcy Can Save Your Vehicle From a Repossession

File a Chapter 13 payment plan to reorganize your debts to allow you to be able to pay the debt within your budget.

     *  Give you the ability to consolidate debts affordably, possibly enabling you to afford the current debt for the item

         that is being repossessed going forward. This can put an end to the repossession process entirely.

     *  Give you time to restructure, refinance or modify your current debt, thus stopping the repossession process. You

         may also include in the Chapter 13 plan a provision to pay the payments you are behind or the total debt on the

         vehicle over a period of up to five years.

     *  Give you time to sell the item that is being repossessed for a minimum of what is owed on it.

     *  While an automatic "stay" is issued to all creditors involved in the bankruptcy, the stay in Chapter 7 is only

         temporary, and following the bankruptcy, the creditor will still want their money if the debt has not been

         discharged in the bankruptcy, and may resume their debt recovery or repossession efforts.

     *  Suppose you do not have the money necessary to stop the repossession or have not agreed with the creditor that

         will stop the repossession process. In that case, the repossession will occur if the lender wants it to happen.

     *  Even when this happens, you still have options and rights that must be protected.