Can bankruptcy stop a repossession?

Filing for bankruptcy creates an automatic stay under which all collection actions, including repossession of an automobile, are stopped. The lender has the option, however, to apply to the court to have the stay lifted to protect its security interest.

Nonetheless, in bankruptcy you can elect to reaffirm your car loan and keep your car if you can demonstrate  that the car is necessary and that the payment is reasonable.

Contact Buffalo bankruptcy attorney Thomas Denny for additional information.

Leave a Reply

Your email address will not be published. Required fields are marked *