' Can Filing Bankruptcy Stop Repossession? - Law Offices of Robert M. Geller, P.A.
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

Can Filing Bankruptcy Stop Repossession?

can filing bankruptcy stop repossessionFacing repossession of your car or other valuable assets can be incredibly stressful. When you’re struggling to make ends meet, the threat of losing your vehicle, which might be essential for work and daily life, adds another layer of anxiety.

If you’re in this situation, you might be wondering if filing for bankruptcy can stop repossession. The answer is yes, bankruptcy can help prevent repossession, but the specifics depend on your circumstances and the type of bankruptcy you file.

How Bankruptcy Can Prevent Repossession

When you file for bankruptcy, an automatic stay is put into effect immediately. This legal action halts most collection activities, including repossession. The automatic stay is designed to give you breathing room while you sort out your financial situation. Here’s how it works:

Automatic stay: As soon as you file for bankruptcy, the court issues an automatic stay that stops creditors from pursuing collection activities. This includes repossessing your car or other secured property. If the repossession process has already started, it must stop once the stay is in place.

Chapter 7: If you file for Chapter 7 bankruptcy, the automatic stay will temporarily prevent repossession. However, since Chapter 7 involves liquidating assets to pay off debts, you could still lose your vehicle unless you can catch up on the missed payments or negotiate with the lender.

Chapter 13: Filing for Chapter 13 bankruptcy provides more long-term protection against repossession. Under Chapter 13, you propose a repayment plan to the court that lasts three to five years. This plan allows you to catch up on missed payments over time while keeping your vehicle. As long as you stick to the payment plan, your car or other assets will not be repossessed.

When Bankruptcy Might Not Stop Repossession

While bankruptcy provides powerful protection, there are situations where it might not completely stop repossession:

Multiple bankruptcy filings: If you’ve filed for bankruptcy multiple times within a short period, the automatic stay may be limited or not apply at all. This prevents people from abusing the bankruptcy system to avoid paying debts.

Lender’s Motion to Lift the Stay: In some cases, the lender can ask the court to lift the automatic stay. This allows them to proceed with repossession. The court may grant this request if the lender can prove that their interests are not being adequately protected, especially if you’re unable to make payments under the terms of your loan.

Inability to afford the payments: Bankruptcy can stop repossession temporarily, but if you cannot afford the payments required under a Chapter 13 plan or catch up on missed payments in Chapter 7, you might eventually lose your vehicle.

Importance of Acting Quickly

If you’re facing repossession, it’s crucial to act quickly. Filing for bankruptcy before the repossession takes place can give you the best chance to keep your vehicle. Waiting too long can complicate your situation, especially if the repossession process has already begun.

Take Control of Your Financial Future

If you’re worried about repossession, don’t wait until it’s too late. The Law Offices of Robert M. Geller can help you understand your options and guide you through the bankruptcy process. Contact us today to schedule a consultation and take the first step toward stopping repossession and reclaiming control of your finances.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

When Does Bankruptcy’s Automatic Stay Go Into Effect?

Filing for bankruptcy can be a daunting experience, but it also provides vital protection for those in financial distress. One...
Read More

Should I Close My Bank Account Before Filing for Bankruptcy?

Filing for bankruptcy is a significant decision that requires careful planning. One common question people have during this process is...
Read More

Can Filing Bankruptcy Stop Repossession?

Facing repossession of your car or other valuable assets can be incredibly stressful. When you’re struggling to make ends meet,...
Read More

Are Bankruptcies Public Record?

When individuals or businesses find themselves in financial distress, they may consider bankruptcy as a way to manage or discharge...
Read More

How Can I Protect My Assets During Bankruptcy?

Filing for bankruptcy can be a challenging decision. Many people worry about losing their assets during the process. In Florida,...
Read More

Will My Landlord Know If I Filed for Bankruptcy?

Filing for bankruptcy can be a daunting decision. If you’re a tenant, you may worry about how this decision affects...
Read More

Should I File Bankruptcy without a Lawyer?

Filing for bankruptcy can be a daunting process. Many people wonder if they should tackle it alone or hire a...
Read More

How Does Bankruptcy Affect My Credit Score?

Filing for bankruptcy is a significant decision. It can have a lasting impact on your financial future, especially your credit...
Read More

Can You File Bankruptcy on a Title Loan?

If you're struggling with debt and have a title loan, you may wonder if bankruptcy can help you escape that...
Read More

Will Bankruptcy Affect My Security Clearance?

When you're facing financial difficulties, the prospect of bankruptcy can be daunting. This concern is amplified if you hold or...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.536.4468

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 328-6667
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 274-9155

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 492-2663

Map And Directions