QUESTION
Will filing prevent auto repossession or judgement for balance owed after resale of vehicle?
Asked on Jun 26th, 2017 on Bankruptcy - California
More details to this question:
I am unemployed. Bills are past due causing hardship and stress.
6 ANSWERS
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Yes, but filing creates the Automatic Stay of nearly all collections against you or your property. But the creditor on the car can move for Relief from the Automatic Stay (unless you work something out with it about payments)-or it can wait until the case is over, the deficiency discharged, and then repossess the car.
Answered on Sep 16th, 2017 at 7:37 AM
Unless you pay you cannot keep the car. Any debt not settled by the repo will be discharged.
Answered on Sep 15th, 2017 at 9:41 AM
Yes, but that is the temperature solution.
Answered on Sep 15th, 2017 at 9:18 AM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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While it will stop it temporarily, a Motion to Vacate Stay can and would be filed and they would be able to seize the vehicle shortly after filing.
Answered on Sep 15th, 2017 at 9:18 AM
Filing chapter 7 will not prevent auto repossession ultimately. Your vehicle loan is secured by the vehicle itself. Lender has the right to repossess. After repossession you should not have liability for any deficiency in value to loan.
Answered on Sep 15th, 2017 at 9:10 AM