Bankruptcy carries with it a not-so-great reputation, but for those Massachusetts residents facing repossession it could one of your best bets. Keep in mind though that bankruptcy is a big financial decision and should be not used for the sole purpose to avoid vehicle repossession, but for those that are under a tremendous amount of debt; including their car note.
Massachusetts Automatic Stay Policy
Many people don’t know that quick bankruptcy filing can help keep you protected from the repo man and potentially keep your vehicle all together. How is this possible? As soon as your papers are filed with the Massachusetts bankruptcy court the automatic stay goes into effect. This is a court ordered action that restricts all collectors to stop any harassing calls, letters, and repossessions.
The automatic stay will be in affect until the bankruptcy is discharged, but in some cases your creditors can ask for a lift on the stay. Luckily for you, most MA bk judges have already predisposed intentions to continue with the stay because the debtors unsecured debts will be included in a chapter 7, or all the debts will be re-modified into a prepayment plan in chapter 13.
Car Loans During MA Bankruptcy
Unfortunately, if the creditor does win the automatic stay battle then they can continue with the repossession, and you are left looking for auto loans while in bankruptcy. But, on a good note, this is possible. In fact, it’s a lot easier than you probably assume it to be.
Here at BankruptcyAutoFinancing.com we work with a network of Massachusetts financing lenders that specialize in bad credit auto loans including both bankruptcy and repossession. These lenders can get you the car loan you need at an affordable rate, and you could be driving off in your car in a few days. But, before you apply online using our fast and free application be sure to get permission from your bk trustee and judge!
Remember, we are not lawyers and cannot give legal advice. The situations discussed are only our experiences over the years and may vary with each customer.