This is a question that is frequently asked at The Law Offices of Paul Y. Lee. The short answer is that yes, an “automatic stay” is enacted when you file for bankruptcy. It safeguards all you own and prevents creditors from pursuing you for payment. This also applies to your car. Both Chapter 7 and Chapter 13 bankruptcy fall under this.
The automatic stay takes effect right away
The automatic stay operates automatically and doesn’t require a judicial order, as its name suggests. Your creditors are therefore unable to stop it from taking effect. When you file for bankruptcy, a number will be assigned to your case. You only need to provide that case number to any creditor to cease all collection efforts, including the lender attempting to repossess your vehicle.
Your creditors must be informed that you have filed for bankruptcy
You must notify your creditors that you have filed for bankruptcy, either on your own or with the help of your bankruptcy lawyer. This is especially true if you worry that your car may be seized. If you don’t, there’s a chance the lender won’t learn about your automatic stay in time to abide by it.
Every creditor you identify on your bankruptcy creditor schedules will be notified as soon as your case is filed when you deal with The Law Offices of Paul Y. Lee. This will demonstrate that the automatic stay is in place, and most creditors will abide with the federal regulations that safeguard debtors in this circumstance. All you have to do to get a repossession business to back off from taking your car is to provide them your case number.
Even if you have not yet declared bankruptcy, you might be able to obtain your car back
The information above may be useful if you are concerned that your car will soon be repossessed, but it may not be as helpful if the car has already been repossessed and you haven’t yet filed for bankruptcy. It’s good to know that you could still have choices. The secret, though, is to move swiftly.
Typically, you’ll have a choice between two alternatives. Your loan might be restored using California law as one possibility. If you’re able to make all of your past payments—or at least a sizable portion of them—this could be a possibility.
Of course, the majority of individuals cannot. After all, if they could make their payments, they would ordinarily do so. The second choice enters the picture at this point: declaring bankruptcy and using the federal bankruptcy rules to reduce your monthly obligations. Yes, this can still be relevant in cases where the car has already been seized. Once more, the key is to take immediate action. Call 951-755-1000 to speak with The Law Offices of Paul Y. Lee right away!