A person facing vehicle repossession may avoid that from happening by filing for bankruptcy with a repossession attorney in St. Louis, MO. In fact, in some cases, a car that has already been repossessed may be returned after a bankruptcy filing. The two types of individual bankruptcy are classified as Chapter 7 and Chapter 13.
A bankruptcy filing results in an automatic stay that stops creditors from any collection activity. Legally, they cannot even call the person who has filed, much less appear on the property and tow a vehicle away. A repossession attorney in St. Louis, MO, can help the client file for Chapter 13 bankruptcy if the person qualifies. This person must have enough income to pay off all payments owed to all creditors within five years, in addition to keeping up with mortgage or rent payments and utility bills. The Chapter 13 arrangement includes back payments to dealerships or financing companies that have loaned money to buy a vehicle.
Chapter 7 bankruptcy can be filed if the person cannot make payments on the other type of arrangement. The person would either have to make all the back payments within a few months or forfeit the vehicle. Even if the person cannot keep the car or truck for the long term, at least there will be a delay before having to give it up. There will be some time to make plans about what to do.
If a vehicle has already been repossessed, the person may be able to get it back by filing for Chapter 13 bankruptcy quickly with the help of a lawyer like Sean C. Paul, attorney at law. This must be done before the dealership or financing company sells it, which usually happens within a couple of weeks. The automatic stay applies to the sale of the vehicle, unless the sale has already taken place. The person getting the vehicle back will be responsible for costs associated with repossession and may need to pay those costs up front. To find out more about bankruptcy laws and vehicle repossession, set an appointment with a lawyer through a website such as Stlbankruptcyfirm.com.
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