Which chapter should I file for bankruptcy? 27 Answers as of May 30, 2013

I am going to file bankruptcy. What is the best way to prevent my car from being repossessed? Which chapter assures this? Does the initial filing prevent this?

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Twin City Attorneys, P.A. | Amy B. Norberg
If you are behind in your car payments, a Chapter 13 can make up for the payments you are behind through your monthly payments to the trustee. A Chapter 7 would temporarily stop the car repossession, but you would need to work with the car finance company to make up your payments.
Answer Applies to: Minnesota
Replied: 1/31/2012
J.M. Cook, P.A. | J.M. Cook
Filing under any chapter will stop the repossession. However, if you can't afford to pay for the car, bankruptcy will probably be only a temporary fix (although you may be able to modify the payments under specific circumstances). Like most questions in bankruptcy, the answer is to speak with a qualified atty who can advise you.
Answer Applies to: North Carolina
Replied: 1/31/2012
Heupel Law
Heupel Law | Kevin Heupel
Either chapter will stop a repossession. If you're late on the payments though, it's probably better to file Chapter 13 to repay the missed payments.
Answer Applies to: Colorado
Replied: 1/30/2012
Bankruptcy Law Center
Bankruptcy Law Center | Bill Zurinskas
In Colorado, if you are current on your vehicle obligations and don't have equity in excess of the applicable exemptions, then you normally will not have your vehicle repossessed by the secured creditor by filing a chapter 7 bankruptcy. If you are behind in your vehicle obligations, you can file a chapter 13 bankruptcy to cure the default.
Answer Applies to: Colorado
Replied: 1/30/2012
The Law Offices of Deborah Ann Stencel | Deborah A. Stencel
Both Chapter 7 and Chapter 13 will prevent a creditor from repossessing a car for at least a short period of time. If it is your intent to use the bankruptcy to force the creditor into a repayment plan so that you can catch up on your car payments, then you need a Chapter 13. You might want to consider carefully whether your car is worth the expense you will incur just to keep it. Chapter 13 attorneys' fees are generally in the neighborhood of $3000.00 and the trustee takes a percentage as well, which adds to the cost of the bankruptcy.
Answer Applies to: Wisconsin
Replied: 1/27/2012
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Can't tell what Chapter is the right one for you based on little information provided. Any bankruptcy case will stop repossession but only in Chapter 13 you can pay for the car over up to 5 years and maybe only what it is worth and at a lower interest rate. In Chapter 7 you will have at the most 3 months to bring the car loan current or work out some other deal with the bank. Chapter 13 costs a lot more in attorney's fees and plan payments must include a 10% approximately commission for the Trustee so not worth it generally to save money on a car unless you are far behind on the payments and no choice to keep car.
    Answer Applies to: California
    Replied: 1/27/2012
    Philip R. Boardman, Attorney at Law
    Philip R. Boardman, Attorney at Law | Phil Boardman
    Both types, ch. 7 and ch. 13 will stop a repossession. The protection goes into effect at the initial filing. However, a ch. 13 has a plan where you pay the car off through a plan payment over the course of 3-5 years. In a ch. 7, a repossession would merely be delayed for approximately 2 months. This might give you time to get the payment caught back up though.
    Answer Applies to: Virginia
    Replied: 1/27/2012
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    Which Chapter depends on a lot of things. Are you behind on your car payment and need time to catch up? Then Ch 13 is probably the way to go. If you are current, or can be current then probably Ch 7. But there mean more issues that have to go into the decision factor, but generally yes when you file it puts in place an automatic stay that has to be lifted in order to repossess your car. Good luck!
    Answer Applies to: Michigan
    Replied: 1/27/2012
    The Law Office of Darren Aronow, PC
    The Law Office of Darren Aronow, PC | Darren Aronow
    Chapter 13 can stop a repossession if you can pay back the arrears. See a local attorney, because in a chapter 13, you may be able to cram down the value to market value as well if you owe more than what it is worth and you qualify.
    Answer Applies to: New York
    Replied: 1/27/2012
    Steven Harrell, Attorney at Law | Waymon Steven Harrell
    If you are behind on your car payments, Chapter 13 allows you to pay the arrearages on the loan through your plan, together with the current payment on the vehicle. If you file Chapter 13 and the vehicle gets repossessed anyway, your attorney can file an adversary proceeding with the bankruptcy court to have the vehicle returned to you.
    Answer Applies to: Georgia
    Replied: 1/27/2012
    Mauritz Van Niekerk, Attorneys at Law
    Mauritz Van Niekerk, Attorneys at Law | Christiaan van Niekerk
    Yes it will stop it from being reposed. If you are in arrears you can look at a chapter 13 to give you time to catch up.
    Answer Applies to: New York
    Replied: 1/27/2012
    Law Office of Raymond J. Dague, PLLC
    Law Office of Raymond J. Dague, PLLC | Raymond J. Dague
    Either a Chapter 7 or a Chapter 13 bankruptcy will stop a car repossession. The circumstances of all of your debt will determine which chapter you should utilize.
    Answer Applies to: New York
    Replied: 1/27/2012
    Law Office of Louis S. Haskell
    Law Office of Louis S. Haskell | Louis Haskell
    Any time there is an issue about which chapter you should be filing, it is time to sit down with an experienced bankruptcy lawyer. If you are behind on your car payments ch. 7 will not prevent it. It may delay it, and it may encourage the bank to be reasonable in trying to work something out, but ultimately the bank will retain its right to repossess. Ch. 13 will allow you to reorganize the arrears on your car payments and to keep the car if you make your future car payments and your payments under the Ch. 13 plan. If you have never filed before, then an automatic stay will issue immediately upon filing, and the bank will be unable to repossess, unless it gets permission from the court, your case is dismissed or, if you file ch. 7, you receive your discharge. If you have filed before, the rules can be complicated, and you definitely need an attorney.
    Answer Applies to: Massachusetts
    Replied: 1/27/2012
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    First of all do not file pro se. That is a great way to lose a car. There is no way a lawyer can answer if you can file, and which chapters you are eligible or ineligible for, without seeing your detailed finances.
    Answer Applies to: Georgia
    Replied: 1/27/2012
    The Smalley Law Firm, LLC | Cary Smalley
    You are able to retain your vehicle in Chapter 7 or Chapter 13. However, you will need to continue to make payments on the vehicle. Chapter 13 may provide you with an option to lower your monthly payment.
    Answer Applies to: Kansas
    Replied: 1/27/2012
    Lakelaw - Loop Bankruptcy
    Lakelaw - Loop Bankruptcy | David Leibowitz
    Chapter 13 lets you keep your car but you have to catch up with the arrearage. In chapter 7, you can keep your car (a) if you are current or (b) if you redeem by paying the creditor the current value of the car.
    Answer Applies to: Illinois
    Replied: 1/27/2012
    Law offices of John P. Brooke | John Brooke
    A chapter 7 only discharges your obligation on the loan. It will not stop the creditor from repossessing the car if you are behind. A chapter 13 will allow you to pay back the arrears and would stop a repossession. The initial filing of either bankruptcy will stop a repossession until the creditor makes a motion to vacate the automatic stay.
    Answer Applies to: New York
    Replied: 1/27/2012
    Mercado & Hartung, PLLC
    Mercado & Hartung, PLLC | Christopher J. Mercado
    The Automatic Stay will stop the repo but only temporarily.
    Answer Applies to: Washington
    Replied: 1/27/2012
    Rosenberg & Press
    Rosenberg & Press | Max L. Rosenberg
    Since you are asking the question, it can be assumed that you are filing without consulting with a real and experienced bankruptcy attorney. Big Mistake! To answer your question, any chapter filed will stop a repossession. You need to file a Motion for Suggestion of Stay however and advise the other side of the filing.
    Answer Applies to: Connecticut
    Replied: 1/26/2012
    The Law Offices of Kristy Qiu
    The Law Offices of Kristy Qiu | Mengjun Qiu
    Yes but if you don't go through with the case they can repossess it. Also, if you don't continue to make payments and bring it current, they can repossess your car even if you file for bankruptcy, because it's a secured debt. Bankruptcy will only delay the repossession.
    Answer Applies to: Florida
    Replied: 1/26/2012
    The Schreiber Law Firm
    The Schreiber Law Firm | Jeffrey D. Schreiber
    A Chapter 7 may delay, but not prevent an eventual repossession unless you bring the account current. A Chapter 13 has the ability to allow you to pay the back payments over time to cure the delinqunet payments and keep the car. However, a Chapter 13 is not just a matter of filling out papers as the vast majority of Chapter 13 cases filed without an attorney are dismissed as not complying with the requirements of Chapter 13.
    Answer Applies to: California
    Replied: 1/26/2012
    The Orantes Law Firm
    The Orantes Law Firm | Giovanni Orantes
    Either Chapter 7 or Chapter 13 can enable you to retain your car. Of course, some people do not qualify for Chapter 13 because their debts exceed the debt limits and must file Chapter11. Under Chapter 7, the banks usually let you reaffirm the debt and all you need do is meet the deadlines established by the Bankruptcy Code. In Chapter 13, your plan can specify how you plan to pay for the car and if you have had it long enough, you may be able to pay only the market value of the vehicle at a relatively low interest rate. You should consult an experienced bankruptcy attorney to determine your best option. Filing for bankruptcy may be called by some "paperwork" but sometimes can lead to negative consequences if you do not prepare your case properly before you file.
    Answer Applies to: California
    Replied: 1/26/2012
    Diefer Law Group, P.C.
    Diefer Law Group, P.C. | Abel Fernandez
    I think based on what you are telling me a Chapter 13 might be best. If you do not pay your car, however, after you file the case, it will still be reposed.
    Answer Applies to: California
    Replied: 1/26/2012
    James Branum Law
    James Branum Law | James Branum
    I don't have enough information to say which chapter you should file. Deciding what chapter to file would be contingent on other factors in your case. But FYI, either chapter will result in an "automatic stay" that will temporarily stop a car from being repossessed.
    Answer Applies to: Oklahoma
    Replied: 1/26/2012
    Moore Taylor Law Firm, P.A.
    Moore Taylor Law Firm, P.A. | Jane Downey
    That would be 13.
    Answer Applies to: South Carolina
    Replied: 5/30/2013
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