Tag Archives: Repo

Can Filing Bankruptcy Save My Car?

Many people’s first question when considering bankruptcy is, “can filing bankruptcy save my car?” It is very possible to save your car from repossession. There are a number of protections and exemptions that may be available to you. The first thing that happens when you file for bankruptcy is that creditors and collectors are immediately prohibited from harassing you for payments. This is called an “automatic stay.” The stay prevents any lender from repossessing the vehicle, unless they get permission directly from the court. The lender may file for a motion to release the automatic stay, thereby allowing it to repossess the car, but only if you have been far behind on the payments and it can prove that it is the primary party in interest. If you file for Chapter 7 but don’t want to lose your car, then you can do one of three things. Cure the default…
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