Can the Lender Repossess Our Automobile During Chapter 7 Bankruptcy?

Can the Lender Repossess Our Automobile During Chapter 7 Bankruptcy?

In case your car finance loan provider gets court permission, it may repossess your vehicle during Chapter 7 bankruptcy. You have actually choices to avoid this.

Updated By Cara O’Neill, Attorney

If you’re in Chapter 7 bankruptcy, your car or truck loan lender cannot repossess your vehicle or otherwise attempt to gather its financial obligation without very first getting authorization from the court. Continue reading for more information about whether the loan provider can repossess your car during Chapter 7 bankruptcy and approaches to avoid repossession.

The Automated Stay Prohibits Vehicle Repossession Without Court Authorization

Filing a Chapter 7 bankruptcy produces a purchase called the stay that is automatic. The automated stay makes it illegal for some creditors to keep collection tasks. Continue reading