If you have missed a few car payments, you may begin to worry about the loan company repossessing your vehicle. This stress and worry often lead people to hide their cars, avoid phone calls from loan companies, and keep their vehicles hidden in hopes of catching up before it’s too late.
The harsh reality is that loan companies have more tools working in their favor than most people realize. Many can track vehicles through GPS trackers. Some also have the ability to keep you from starting your car entirely through the use of starter interrupter devices.
Trying to avoid repossession can quickly feel like a losing battle when you’re up against these tools.
For many debtors, personal bankruptcy offers legal protection from loan companies so that their vehicle and other property cannot be repossessed, at least until the case is settled.
What Happens When You File for Bankruptcy
Many complaints from debtors about loan companies and repossessors are about the overly aggressive and demanding nature of their attempts to repossess a vehicle. When you file for chapter 7 bankruptcy or chapter 13 bankruptcy, the court issues something called an automatic stay. This stay immediately stops most collections, including vehicle repossession.
Once the stay is in place, loan companies are no longer allowed to demand your car or attempt to repossess it. Phone calls, threats, and repossession attempts must stop while your case is active.
To put it plainly, filing bankruptcy puts the law on your side.
How an Automatic Stay Protects Your Vehicle
The automatic stay exists to give people time to work through their financial situation without the constant pressure and hounding from creditors. For many, this break alone brings a moment of relief. Instead of worrying about losing your vehicle, you now have time to make informed decisions with guidance from a bankruptcy attorney.
An experienced Opelika bankruptcy lawyer can help you understand more about how the stay applies to your specific situation and your options moving forward.
Is This Protection Permanent
The automatic stay that comes when you file for bankruptcy can stop a repossession, but it is not always permanent. It is meant to give you time. This time allows you to take a step back, understand your options, and work through your debt without the constant pressure of repossession attempts.
Because the stay is temporary, there is still a chance that you may have to give up your vehicle by the end of the case. That depends on your financial situation and the type of bankruptcy you file for.
However, bankruptcy gives you a real opportunity to protect your car. It also gives you legal protection from harassment or intimidation by loan companies while your case is active.
David S. Clark, An Auburn & Opelika Bankruptcy Attorney
David S. Clark and his team have been helping Auburn and Opelika, AL residents avoid repossession through bankruptcy for years and have the experience necessary to advocate your case before a bankruptcy court and in the face of intimidating loan companies.
If you are facing repossession in Auburn or Opelika and are considering filing for Chapter 7 or Chapter 13 bankruptcy, contact David S. Clark today.
DISCLAIMER: The above blog post is just advice, and you will be better served to call David S. Clark with your bankruptcy questions. This blog contains helpful tips and advice, but is not professional legal advice, and shouldn’t treated as such.
