QUESTION
Which chapter should I file for bankruptcy?
Asked on Jan 12th, 2012 on Bankruptcy - Oklahoma
More details to this question:
I am going to file bankruptcy. What is the best way to prevent my car from being repossessed? Which chapter assures this? Does the initial filing prevent this?
12 ANSWERS
Business Bankruptcy Attorney serving Raleigh, NC
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J.M. Cook, P.A.
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Filing under any chapter will stop the repossession. However, if you can't afford to pay for the car, bankruptcy will probably be only a temporary fix (although you may be able to modify the payments under specific circumstances). Like most questions in bankruptcy, the answer is to speak with a qualified atty who can advise you.
Answered on Jan 31st, 2012 at 12:40 PM
Bankruptcy & Debt Attorney serving Longmont, CO
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William Edward Zurinskas
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In Colorado, if you are current on your vehicle obligations and don't have equity in excess of the applicable exemptions, then you normally will not have your vehicle repossessed by the secured creditor by filing a chapter 7 bankruptcy. If you are behind in your vehicle obligations, you can file a chapter 13 bankruptcy to cure the default.
Answered on Jan 30th, 2012 at 5:41 PM
Chapter 7 Bankruptcy Attorney serving Milwaukee, WI
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Law Offices of Deborah A. Stencel
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Both Chapter 7 and Chapter 13 will prevent a creditor from repossessing a car for at least a short period of time. If it is your intent to use the bankruptcy to force the creditor into a repayment plan so that you can catch up on your car payments, then you need a Chapter 13. You might want to consider carefully whether your car is worth the expense you will incur just to keep it. Chapter 13 attorneys' fees are generally in the neighborhood of $3000.00 and the trustee takes a percentage as well, which adds to the cost of the bankruptcy.
Answered on Jan 27th, 2012 at 1:17 PM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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Can't tell what Chapter is the right one for you based on little information provided. Any bankruptcy case will stop repossession but only in Chapter 13 you can pay for the car over up to 5 years and maybe only what it is worth and at a lower interest rate. In Chapter 7 you will have at the most 3 months to bring the car loan current or work out some other deal with the bank. Chapter 13 costs a lot more in attorney's fees and plan payments must include a 10% approximately commission for the Trustee so not worth it generally to save money on a car unless you are far behind on the payments and no choice to keep car.
Answered on Jan 27th, 2012 at 11:53 AM
Bankruptcy Attorney serving Hampton, VA
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Haven Law Group, P.C.
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Both types, ch. 7 and ch. 13 will stop a repossession. The protection goes into effect at the initial filing. However, a ch. 13 has a plan where you pay the car off through a plan payment over the course of 3-5 years. In a ch. 7, a repossession would merely be delayed for approximately 2 months. This might give you time to get the payment caught back up though.
Answered on Jan 27th, 2012 at 11:52 AM
Yes it will stop it from being reposed. If you are in arrears you can look at a chapter 13 to give you time to catch up.
Answered on Jan 27th, 2012 at 11:16 AM
Criminal Law Attorney serving Syracuse, NY
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Raymond J. Dague, PLLC
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Either a Chapter 7 or a Chapter 13 bankruptcy will stop a car repossession. The circumstances of all of your debt will determine which chapter you should utilize.
Answered on Jan 27th, 2012 at 10:53 AM
Glen Edward Ashman
First of all do not file pro se. That is a great way to lose a car. There is no way a lawyer can answer if you can file, and which chapters you are eligible or ineligible for, without seeing your detailed finances.
Answered on Jan 27th, 2012 at 10:42 AM
Bankruptcy Attorney serving Overland Park, KS
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The Smalley Law Firm, LLC
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You are able to retain your vehicle in Chapter 7 or Chapter 13. However, you will need to continue to make payments on the vehicle. Chapter 13 may provide you with an option to lower your monthly payment.
Answered on Jan 27th, 2012 at 10:37 AM
Since you are asking the question, it can be assumed that you are filing without consulting with a real and experienced bankruptcy attorney. Big Mistake! To answer your question, any chapter filed will stop a repossession. You need to file a Motion for Suggestion of Stay however and advise the other side of the filing.
Answered on Jan 26th, 2012 at 7:13 PM
Information provided doesn't create an attorney/client privilege nor constitute an offer of services and is only general responses to hypotheticals
Consumer Bankruptcy Attorney serving Los Angeles, CA
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Orantes Law Firm
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Either Chapter 7 or Chapter 13 can enable you to retain your car. Of course, some people do not qualify for Chapter 13 because their debts exceed the debt limits and must file Chapter11. Under Chapter 7, the banks usually let you reaffirm the debt and all you need do is meet the deadlines established by the Bankruptcy Code. In Chapter 13, your plan can specify how you plan to pay for the car and if you have had it long enough, you may be able to pay only the market value of the vehicle at a relatively low interest rate. You should consult an experienced bankruptcy attorney to determine your best option. Filing for bankruptcy may be called by some "paperwork" but sometimes can lead to negative consequences if you do not prepare your case properly before you file.
Answered on Jan 26th, 2012 at 7:07 PM
I don't have enough information to say which chapter you should file. Deciding what chapter to file would be contingent on other factors in your case. But FYI, either chapter will result in an "automatic stay" that will temporarily stop a car from being repossessed.
Answered on Jan 26th, 2012 at 6:59 PM