Stop Repossession with Bankruptcy
What options do you have to stop a repossession from happening should you miss your car payment? File bankruptcy. Yes, you read that correctly, bankruptcy can and will stop a repossession from happening if you file before the repo man shows up at your front door and you file a chapter 13.
Automatic Stay in Chapter 13
As soon as the papers are submitted for a chapter 13 bankruptcy the automatic stay rule goes into effect. This simply means that any creditor is prohibited from making harassing phone calls, sending collection notices, and repossessing the vehicle. The automatic stay rule is implemented until you receive a discharge or a dismissal from the bankruptcy.
Creditors can dispute to have the automatic stay lifted if they have reasonable cause to do so, such as, being behind on your payment for multiple months. If the judges allow this then the creditor is allowed to pursue repossession of the vehicle, and leave you looking for an auto loan during bankruptcy.
Options for Your Vehicle Loan in Bankruptcy
Keeping your car in a chapter 13 bankruptcy is possible, but that is not always the best financial decision. You got behind on your loan for some reason, whether it be you lost you job, or the payment is simply too high, there was a reason. If the monthly payment is too high to keep paying, you may want to think about surrendering the vehicle back to the creditor. This is allow you to wipe you hands of all debt pertaining to the vehicle, and you can apply for a new bankruptcy auto loan.
If you decide you want to keep your vehicle you may cram down the loan if you are eligible. This means you can buy the car from the lender in a lump sum for what the car is worth. This is only available if you have owned the car for more than 910 days, or 2.5 years. This is to stop individuals from buying a new car and a couple months later filing bankruptcy and including the car.
Where to Apply For Bankruptcy Auto Loans
Here at Bankruptcy Auto Financing we have a nationwide network of lenders that specialized in subprime auto loans. They understand that mistakes happen, and see your bankruptcy and a fresh start. If you meet their minimum requirements they can get the car financing after bankruptcy that you need to get into a new or used vehicle.
If you are ready to get back on your feet and rebuild your credit, apply online today using our secure application.
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.
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