Stop a Repossession with Bankruptcy
If you are falling behind on payments for a car, truck, boat, motorcycle or other high-value piece of property, you may be facing repossession. Your creditors can repossess your property at any time, and once they do, you may have no way of getting it back. You should act quickly to avoid repossession.
Put an Instant Halt to Repossession: The Automatic Stay
When you file for bankruptcy, the courts will issue an ”automatic stay.” The automatic stay is an order that forbids your creditors from contacting you or taking any actions toward collections, including repossession. Once you file for bankruptcy, the automatic stay means your creditors will stop calling you for payments. The automatic stay may also allow you time to catch up the back payments.
How Chapter 13 Bankruptcy Stops Repossession
Chapter 13 bankruptcy will allow you time so that you can catch up on back payments called “arrears.” It will also put an automatic stay on repossession and other attempts at collection, giving you necessary time to catch up on payments.
Most arrears will be paid towards secured debt — that is, debt on assets that you own. Most unsecured debts can be discharged through Chapter 13 bankruptcy.
To learn more about bankruptcy in the Austin, Georgetown, Leander, or Round Rock area, you can schedule an appointment for a free initial consultation with one of the members of our legal team. Just call 512-322-5367 or
contact our offices online.