Stop Repossession of Your Car, Truck, or Other Vehicle
No matter how difficult a person’s financial situation may become, there are some things that continue to be an absolute necessity. For many, this includes their car. However, if you have fallen victim to the harsh economic times and are behind on your car payments, the threat of repossession is very real. In most cases, if you are behind on your car payments, the lender has the right to repossess your car. However, you can take action to prevent repossession. Filing for bankruptcy can stop repossession and give you time to get your finances in order.
How Can Bankruptcy Help Me Keep my Car?
Bankruptcy can be very helpful in alleviating financial hardship by protecting property that may be in danger of repossession. Filing Chapter 7 or Chapter 13 bankruptcy will immediately stop repossession of your vehicle under the “automatic stay” provision of the Bankruptcy Code. The automatic stay is an order from the Bankruptcy Court issued to all creditors as soon as a bankruptcy petition has been filed. It prevents creditors from making any further collection attempts against you or your property, which includes repossession of you vehicle.
Is It Better to File Chapter 7 or Chapter 13 Bankruptcy to Keep My Car?
Unfortunately, there is not a one-size-fits-all answer to this question. Deciding whether to file Chapter 7 or Chapter 13 requires a careful review of your particular situation and finances… preferably by an experience bankruptcy lawyer. Generally, however, filing Chapter 7 will at least temporarily stop repossession and give you extra time to come up with a plan to get yourself in better financial shape. In Chapter 13, debts are essentially reorganized so the debtor makes only one affordable monthly payment. Regardless of which type of case you file, while the automatic stay is in effect, creditors are prevented from taking your car without a court order.
Experienced Bankruptcy Attorneys Helping to Stop Auto Repossession
The Berry & Associates legal team has helped thousands of clients stop car repossession in Georgia. Our attorneys average over 10 years of bankruptcy law experience, and we provide an unmatched level of service and responsiveness. If you are having a difficult time paying your bills, call our office at (800) 414-3328 for a free consultation. We represent clients across the state of Georgia in bankruptcy cases, including Morrow, Peachtree City, Canton, Ellijay, and Duluth.