Can you protect your vehicle against repossession with bankruptcy?

You’ve been getting behind on your bills and struggling to make ends meet. You are frustrated by this, but you’ve done all you can to try to catch up. You even took a second job, just to try to catch up on your missed payments.

Now, you’re worried that your vehicle is going to be repossessed. If it is, you won’t have any way to get to work, and you’ll end up even further behind on your debts. What should you do?

A Chapter 7 bankruptcy may help you avoid repossessions

The good news is that a Chapter 7 bankruptcy can help you avoid repossessions. With a Chapter 7 bankruptcy, you may be able to discharge your unsecured debts, which may include:

  • Check advances or payday loans
  • Repossession balances
  • Medical bills
  • Personal loans
  • Credit card debt

If you’re struggling and behind because of taking out payday loans or having too many credit card bills, then this could be the right solution for you. When you enter into bankruptcy, all collections activities stop immediately. That means bankruptcy stops:

  • Creditor lawsuits
  • Liens
  • Wage garnishment
  • Creditor harassment

The good news is that you may also be able to keep the majority of your assets. There are plenty of exemptions to be used, so your attorney will talk to you about how to protect the assets in your possession.

Our website has more about vehicle repossession and how to protect what you own if you’re behind on paying off your debts. You deserve this chance to get back into control of your finances and to find better financial footing. There is help available, and you can emerge from this situation successfully.