We have locations available by appointment in the following areas. Please call us to speak to an attorney and set up an initial meeting.
If you are facing the prospect of repossession, you may have options for keeping your property. One of the best options involves relying on the protections of the bankruptcy code.
Preventing vehicle repossession during bankruptcy in Dearborn is possible, at least temporarily. With the support of skilled legal counsel, you might be able to use this process to catch up on missed payments and avoid having your car repossessed at all.
When you file for bankruptcy, one of the immediate protections you receive is the automatic stay. This is a powerful legal tool that stops most collection efforts the moment your bankruptcy case is filed. It applies to creditors, collection agencies, and even repossession agents. For individuals facing the imminent loss of a vehicle, the automatic stay can offer critical relief.
The automatic stay prevents your lender from repossessing your car, even if you’re behind on payments. This pause gives you time to sort through your financial situation without the added stress of losing your only mode of transportation. Even if repossession was scheduled or in process, your lender must stop immediately and avoid any further attempts while the stay is in effect.
Whether you’re weeks behind or already facing threats of repossession, the automatic stay can buy you some time. During the bankruptcy process, you might determine that keeping your vehicle isn’t feasible, or you could potentially work out a deal with your lender that staves off repossession for good. An attorney from our firm can help you weigh these options and decide on the right path forward.
The automatic bankruptcy stay will remain in place during the extent of most bankruptcy cases. However, certain creditors have the right to ask the court for relief from these protections. This can be done through a legal filing known as a motion for relief from the automatic stay.
If your creditor files this motion and can show the court that you are delinquent on your payments for a secured asset, the court will typically give them permission to continue collection efforts even as the bankruptcy case continues. This means there may be more to preventing auto repossession than simply filing for bankruptcy in Dearborn.
The automatic bankruptcy stay will bring any collection efforts against you to a halt—at least for a little while. Your creditors have the ability to file a motion for relief from the stay and continue repossession efforts against you in some cases. The good news is that there are tools that might allow you to keep your vehicle and keep your creditors at bay after your discharge. One of those tools is a reaffirmation agreement.
When you reaffirm a debt with your creditor, you are agreeing to continue paying it even though you have the right to discharge the obligation. While most people file for bankruptcy protection in order to discharge debt, keeping a vehicle that was set to be repossessed is one of the most common reasons for using these agreements. In addition to using a reaffirmation agreement to prevent repossession in Dearborn, you might even get your creditor to agree to more favorable terms, like lower interest rates.
If you are facing financial hardship and want to avoid having your vehicle repossessed, you could benefit from talking with a dedicated attorney. Our firm can answer your questions about preventing vehicle repossession during bankruptcy in Dearborn. Call today for a private consultation, and visit our online debt calculator for more immediate information.
We have locations available by appointment in the following areas. Please call us to speak to an attorney and set up an initial meeting.
We are a debt relief agency helping people file bankruptcy under the United States Bankruptcy Code.
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