Chapter 7 bankruptcy: Generally speaking, a Chapter 7 bankruptcy will not stop your car from being repossessed. This is because Chapter 7 bankruptcy does not discharge secured debts, such as car loans. If you are behind on your car payments, the lender can still repossess your car even after you have filed for bankruptcy.
Chapter 13 bankruptcy: A Chapter 13 bankruptcy may be able to stop your car from being repossessed. This is because Chapter 13 bankruptcy allows you to repay your debts over time through a court-approved repayment plan. If you are able to make the payments under your Chapter 13 plan, the lender will not be able to repossess your car.
However, it is important to note that even if you file for Chapter 13 bankruptcy, the lender may still be able to repossess your car if you fail to make your payments under the repayment plan.
Reaffirmation agreements: In some cases, you may be able to enter into a reaffirmation agreement with your lender. A reaffirmation agreement is a contract in which you agree to repay the debt for your car even after it has been discharged in bankruptcy. If you enter into a reaffirmation agreement, the lender will not be able to repossess your car.
It is important to speak with an experienced bankruptcy attorney to discuss your specific situation and to determine if you can keep your car after filing for bankruptcy.
