How Bankruptcy Affects Car Repossession
Cars are prized possessions for most individuals. Not only are they the only available means of transportation for many people, but for some they are also a powerful symbol of personal freedom. Therefore, the prospect of having a car repossessed is deeply worrying for most people. However, there are a number of different options available to those facing repossession. In particular, by filing for bankruptcy, an individual may be able to maintain possession of their vehicle.
If you are facing the repossession of your car, you may want to consider the benefits of pursuing bankruptcy protection. Contact the Boca Raton bankruptcy lawyers of Eric N. Klein & Associates, P.A., today at 561-353-2800 to discuss the details of your situation with an experienced legal professional and determine your best course of action.
Car Repossession and Types of Bankruptcy
When a person files for bankruptcy, a stay preventing repossession is typically placed on all of their assets. However, not all of those who pursue bankruptcy will be able to keep their cars. Nevertheless, those who undergo bankruptcy may be able to maintain possession of their vehicles in the following cases:
- Chapter 7 – Under Chapter 7 bankruptcy, an individual may be able to keep their vehicle if it is below a certain value by having it exempted from asset liquidation.
- Chapter 13 – Those who pursue Chapter 13 bankruptcy may be able to keep their vehicles by obtaining a more favorable repayment plan through debt reorganization.
These are the general circumstances in which individuals facing car repossession may be able to keep their vehicles by filing for bankruptcy protection.
Contact Us
If you have significant debt obligations which you can no longer afford to manage, bankruptcy may be the most viable option for securing financial freedom. Contact a Boca Raton bankruptcy attorney with Eric N. Klein & Associates, P.A., at 561-353-2800 today to speak with a qualified member of our legal team about the details of your situation.
