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. If the creditor files such a motion, you are usually given two-three weeks before a hearing. Until the hearing, and until the motion is granted, the creditor cannot repossess your vehicle.

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 at (716) 800-1234 for additional information and a free consultation.