Will I Lose My Car if I File for Bankruptcy?

Bankruptcy is designed to provide you with protection and help you get the debt relief you need. Filing for bankruptcy does not mean that you will automatically lose your car.

Some assets, including vehicles, can be protected from liquidation in Chapter 7 bankruptcy. In Chapter 13 bankruptcy, you can reorganize your debt and develop a plan to start regularly paying your car loan. Furthermore, you can prevent repossession by filing for bankruptcy.

At Markowitz O'Donnell, LLP, in Lawrenceville, our attorneys take a hands-on approach to bankruptcy. We will work directly with you to ensure you understand your legal options, and we will work together to find a debt relief solution that works for you. Our lawyers can help you devise a strategy to help you keep your car and avoid repossession.

Car Repossession, Bankruptcy Law and Debt Collection

Nearly every car loan agreement contains a clause that allows the lender to repossess your vehicle if you fall behind on payments. In some cases, the lender can repossess if you fall behind only one time.

You can stop repossession, however, by filing for bankruptcy. When you file, an automatic stay goes into effect. This puts a stop to all debt collection actions, including any future repossessions or the sale of your car at auction. Through the bankruptcy process, we can then help you get a handle on your debt payments and keep the car you need to get to work, school and other commitments.

Contact Us for More Information About Bankruptcy

We will clearly explain your options and your legal rights so you can make informed decisions regarding your car debts and other debt problems. Contact us to schedule a consultation. Call 609-482-3138 or 866-437-1189.