Yes, your creditor can repossess your car under Chapter 7 bankruptcy in California. But you can avoid this situation and keep your vehicle. Many think that Chapter 7 bankruptcy will discharge all their loans. However, there will be some exceptions. Without legal knowledge, you cannot get the most from bankruptcy. You can reach out to the experienced attorneys of Fong Law Group. The skilled legal professionals have experience in Chapter 7 bankruptcy car repossession. Hence, you can expect the best help.
It is worth mentioning that your car creditor cannot repossess your vehicle without the court's permission. Once you get an automatic stay order, you will not experience any harassment from your creditors. They will have to wait. But your car's debt lender can get court's approval to repossess your vehicle. However, you can avoid car repossession. Keep reading to know more about Chapter 7 bankruptcy car repossession.
Chapter 7 Bankruptcy & Car Repossession
Once you file bankruptcy under Chapter 7, the bankruptcy court will issue an automatic stay order. The order will stop the collection activities of your creditors. Hence, your lender cannot come and repossess your car. The creditor will have to get the court's permission to repossess it. But you can talk to Fong Law Group and know your legal rights. Fong Law Group has a good reputation for offering the best legal help to Monterey Park California and surrounding areas.
Can A Lender Get Court's Permission for Car Repossession?
Your lender might request the court to lift the automatic stay order. The creditor will have an option to file a motion for relief from the stay order. In the relief petition, the lender will show that you have not made payments and the lender has experienced financial loss due to your default status. However, you will have two weeks to oppose the motion of your car creditor. If you defend the relief petition, the court will start hearing within thirty days of motion filing. The judge will deny the motion if you prove that the lender has incorrect charges about your payments. However, if it is accurate, the judge will continue with the hearing. In the end, you both will have to settle. If you cannot negotiate with your lender, the court might lift the automatic stay. In that condition, the creditor can repossess your vehicle.
How Can You Prevent Repossession Under Chapter 7 Bankruptcy?
If you want to keep your car, you can consider the following.
Cure the Default
Your lender can repossess your car when the debt is in default. However, if you can cure the default, the lender will not have reasons to repossess your vehicle.
You can convince your lender and make timely payments. Yes, car creditors make money from interests. You can consider a repayment plan. Your lender might reduce your interest rate, repayment, or principal balance.
Do you have more queries? Call Fong Law Group at (626) 289-8299 for a FREE consolidation, and talk to an attorney today. We are here to help you get through this difficult time in your life, and help you with a Fresh Start.