Wednesday, November 23, 2016
Can My Car Be Repossessed During My Bankruptcy?
The possibility that your wages will be garnished, your home foreclosed on, or your car repossessed if you are behind on payments is great. The longer you go without making a payment, the more likely your creditors are to take action to collect what is due or to take back the property that secures the loan. But, if you file for the protection of bankruptcy, you get a chance to breathe and figure out your next step.
Filing bankruptcy will put an automatic stop to any collection efforts, and also requires any wage garnishments to immediately stop. If your home is in foreclosure when you file a bankruptcy case, that action has to cease as does any effort at repossession of your vehicle. If your auto lender is trying to take your car away from you while you are in bankruptcy, you must do the following things:
● Call your attorney right away! Unless the auto lender has relief from the automatic stay, any efforts at repossession are against the law.
● Provide your bankruptcy case number and date of filing to your auto lender, and to any repossession agent that shows up to try and take your vehicle.
● Make sure your lender has proof of current insurance, because sometimes a lender thinks they can repossess a vehicle if it is unprotected from hazard.
One of the biggest benefits to filing bankruptcy is that you get a break from collection and repossession efforts. If your lenders fail to abide by the rules, and take action when they are not permitted to do so, you have a cause of action against that lender for violating the automatic stay and possible wrongful repossession. We know what rights you have during bankruptcy, and aggressively pursue all of those rights for you. If you are being called and asked to pay a debt that is included in your bankruptcy, or if you have received notice of a lawsuit that concerns one of your bankrupt accounts, take action! You are entitled to a fresh financial start, and that includes a start that is free from creditor harassment.
For more information about how bankruptcy can stop a repossession, call us today or reach us online at www.law-ri.com. We have multiple locations to serve you and can schedule a time to meet at the office most convenient for you.