QUESTION
If I file bankruptcy before my car is repossessed, am I able to keep the car while a settlement is negotiated?
Asked on Oct 18th, 2016 on Bankruptcy - Oregon
More details to this question:
I am almost 3 months behind on my car payment and have 2 registration loans out on the car. I'm trying to hang onto the car and get my finances back in line. Also on average, how long does the bank let a car loan go without payment before repossessing the car?
4 ANSWERS
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It depends on the company. In a Ch. 7, they might immediately file a motion to lift the automatic stay & grab the car before a hearing.
Answered on Nov 14th, 2016 at 5:20 AM
Roughly 45 days, or thereabouts.
Answered on Nov 10th, 2016 at 4:51 PM
This strategy is a gamble and how an individual creditor will respond is all over the place. Some creditors will immediately file paperwork with the bankruptcy trustee and will be entitled to recover the vehicle within 4 or 5 weeks, others will wait out the 3 ? 4 months for a discharge to occur before attempting to repossess. Unlike you will be able to negotiate a settlement without having access to a substantial amount of cash.
Answered on Nov 10th, 2016 at 4:51 PM
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If you are considering a chapter 7, then the filing of the case will give you at least 17 days before the car lender will be allowed to repossess. It usually takes longer than that. I am not sure why you think you will be able to negotiate a settlement. It is nearly impossible to get a car lender to negotiate with you in a chapter 7. In a chapter 13, you can pay the car off over time through the court and start fresh payments 30 days after you file the case. A chapter 13 will be more expensive, but it also give you more control over the car.
Answered on Nov 10th, 2016 at 4:50 PM