Our firm handles both bankruptcy and repossession cases, it’s no surprise when people call us and asking “Will file bankruptcy prevent my car from being repossessed?” This may seem like a simple enough question that would warrant a YES or NO answer, but that isn’t the case. The correct answer would be that filing for bankruptcy can help in preventing your car from being repossessed.
Depending on the type of bankruptcy you file, you may have some protection from repossession through the automatic stay. If your car loan lender is adamant about repossessing the car though, they can request permission to do so through the courts. This request is often granted if the individual purchased the vehicle recently and still owes a lot to the finance company. Basically, they are more likely to push for the repossession permission from the courts if they stand to make a decent profit on your car. This would be done by them filing a “motion for relief from the automatic stay.” Even if this is approved by the court, there still may be a way to stop them from proceeding.
You have two weeks after a judge grands the motion for relief from automatic stay to oppose their newly granted rights. This is when it would be smart to hire a Los Angeles Bankruptcy attorney. One of the most common reasons for a judge to grant an opposition for the motion for relief from automatic stay is because of procedural errors. By working with a knowledgeable bankruptcy attorney, you may be able to find flaws in the procedures your finance company used.
Is Bankruptcy a Bad Thing?
Bankruptcy is only a bad thing if the individual uses it incorrectly. People that file for bankruptcy in order to get their finances back on the right path, and don’t try to abuse the legal system have seen how good of a thing bankruptcy can actually be. Despite popular belief, filing for bankruptcy can actually help your credit score by eliminating old debt that’s been on your record.
So, with all of the information we’ve given you – how would you know if you should file bankruptcy to stop repossession? Call us to speak with our bankruptcy attorney in Los Angeles that knows the laws and can assess your specific situation. We’ll review your current car loan, as well as any other debts you may be facing.
Keep Your Car by Calling Today
Call today to see if filing bankruptcy to prevent your car from being repossessed makes sense for you. We offer free legal analysis and will be able to answer any questions you have that specifically relate to your situation. Consultations are available in English and Spanish – over the phone or in person at our Los Angeles office location.