Bankruptcy in many cases is judged as a bad thing, but there are times where bankruptcy can help you. Such cases include using a chapter 13 bankruptcy to get your repossessed car back. How is this possible? The Automatic Stay policy is implemented the minute a chapter 13 is filed which prevents the creditor from selling the vehicle at auction until they receive relief from the Automatic Stay.
If you have recently had your vehicle repossessed due to defaulting on the loan, and instead of applying for a new auto loan after bankruptcy, you want your car back you can do so by filing a chapter 13 bk. The catch? The bankruptcy must be filed within 21 days of the repossession. This is because after 21 days the dealer is then able to sell the vehicle at auction, and it is gone for good.
What is the Automatic Stay?
The Automatic Stay policy is an automatic injunction that is implemented the second a bk is filed. It prevents creditors from coming after the debtor to collect any past-due balance, repossessing any property, or garnishing your wages. The Automatic Stay is in effect until one of the following happens:
- The judge grants relief to the creditor
- You surrender the property to the bk
- You receive a discharge or dismissal from the judge
A creditor may ask for a relief from the Automatic Stay if they feel that their interest in the car is not being adequately met by the debtor. This basically means that if the debtor is not keeping the car insured or does not have the correct insurance required on the vehicle.
Chapter 13 Bankruptcy and Car Loans
If you’re bankruptcy judge has lifted the Automatic Stay policy for your creditors they are allowed to continue with repossession. This means you are left with no form of transportation, so what are you going to do? Here at BankruptcyAutoFinancing.com we specialize in matching bankrupt individuals with dealerships willing to work with bankruptcy.
Simply fill out and submit the online application. Once we receive your information we will send it to the subprime lenders near you and get you set up with the one who offers the best deal. Don’t worry; we know that that a chapter 13 bankruptcy can take up to 5 years to be discharged which is why we can help with open bankruptcy car loans too.
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.