“I have missed a few car payments and am breaking my back to get those payments caught up. My bank won’t work with me and they said that my car details have been sent to the repossession department! They said I could lose my care at any time! What?  I really need help! Don’t they understand that I need it to get to my job so I can pay for the car?  What can I do?”

You can find out about bankruptcy and then maybe file if it ends is what you need. Usually, are many reasons someone should file for bankruptcy, but often there is one reason that outweighs them all and saving a piece of property, like a car, is one of them. Immediately after filing a Bankruptcy a Debtor (link to definitions) is receives protection from their creditors called the “Automatic Stay.” The Automatic stay is like an umbrella on a rainy day which protects you from the rain. Except in this scenario, the rain is your creditors and they have no option but to immediately stop all attempts to collect, including repossessions. The phrase “stop dead in their tracks” is an apt way to put it because any violation of this protection is a violation of Bankruptcy law.

If you end up filing a Chapter 7, you will need to bring your car payments current as soon as possible. The reason for this is because your automobile loan is “attached” or “secured” to your car. Another way to look at is that your car is collateral to ensure payment. No payment means they can pick up the car. This is why the back is permitted to repossess the car if you are not paying for it.

If you want to stop a repossession or prevent one from even starting, Contact RS Law today for your free consultation.