Stop Repossession Of Your Vehicle
Filing Chapter 13 bankruptcy can prevent repossession of your vehicle, and it may help to recover a vehicle that has already been repossessed.
Filing bankruptcy stops the repossession process. When you file either Chapter 7 or Chapter 13 bankruptcy, the court automatically issues an order known as an “automatic stay.” The automatic stay directs your creditors to cease all collection activities, including repossession of your vehicle.
Under Chapter 13 bankruptcy, also known as wage earner’s bankruptcy, a debtor proposes a reasonable payment plan and is allowed to repay his or her debt over an extended period, generally three to five years. In the case of a vehicle loan, a Chapter 13 payment plan will allow a debtor to repay the balance of the loan in fixed payments over the course of 60 months and may limit the interest on the loan. The result is often a lower monthly payment to the lender.
We are a debt relief agency. We help people file for bankruptcy under the U.S. Bankruptcy Code.