Before Bankruptcy:
If the individual is behind on their car payments and their lender has the right to repossess the car, they may choose to do so before bankruptcy is filed. This is because filing bankruptcy does not automatically stop repossession.
During Bankruptcy:
If the individual has already filed for bankruptcy, the lender may still be able to repossess the car in certain circumstances. For instance:
- If the individual fails to make the payments required by the bankruptcy court.
- If the individual does not reaffirm the car loan as part of the bankruptcy process.
- If the car is not exempt under the bankruptcy laws.
After Bankruptcy:
After bankruptcy is completed and the individual receives a discharge of their debts, they are no longer legally obligated to pay the car loan. However, if they want to keep the car, they will need to make arrangements with their lender to either repay the loan or reaffirm it. If they fail to do so, the lender may repossess the car.
To prevent repossession, it's important to understand the terms of your bankruptcy and car loan, and to make the required payments as per the agreement. If you are struggling to make car payments, it's advisable to consult with an experienced bankruptcy attorney to understand your options and protect your rights.
