Can bankruptcy stop repossession?
When you get behind on payments of a debtor secured by your car, furnishings, appliances or other possessions, a creditor can repossess these items. Even if you voluntarily surrender the property, this may still be regarded as repossession for all legal purposes. Upon repossession, the items will be sold and the money from the sale credited to your account. If the sale proceeds are not enough to pay off the account and costs of repossession, you will be held liable for the difference. At that point, the creditor can take whatever additional collection actions it deems appropriate, including filing a lawsuit against you. The filing of any type of bankruptcy stops all repossessions and stops the creditor from selling the items already in their possession. Filing a chapter 7 bankruptcy cancels the debt. A chapter 13 bankruptcy also stops the repossession, but it allows you to keep the item and restructure the debt. Through a chapter 13, it may even be possible to have a repossessed item r
