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Can a Car Lender Repossess a Car in Chapter 7 Bankruptcy?

If you’re feeling stressed about your finances and you're being harassed by creditors, you might be considering filing for bankruptcy. With the help of an experienced Fort Worth bankruptcy attorney, you can fight for your financial freedom and obtain the best possible results for your case. At Huebner Law Firm, PC, we help countless people get the financial freedom they need for a fresh start. Because we work with so many people, we know that one of our clients’ biggest concerns is their car lender repossessing their vehicle if they file for Chapter 7 bankruptcy. Our team explains how that process would take place and what you can do to prevent it.

Can a Lender Repossess My Car If I File for Chapter 7 Bankruptcy?

If you file for Chapter 7 bankruptcy, your car loan lender cannot repossess your car or try to collect what you owe on it without getting permission from the court. Your car lender can’t take the car back because when you file for Chapter 7 bankruptcy, it creates an automatic stay. An automatic stay makes it unlawful for creditors to continue collecting their debt, or even to contact you. However, a car lender can repossess your car if they obtain permission from the court.

How Can the Car Lender Obtain Permission from the Court?

A car lender can repossess the vehicle if they file a motion to ask the court to lift the automatic stay. The lender must show that they have the right to repossess the car because the party responsible for paying failed to do so on time. You usually will have two weeks to oppose the lender’s motion for relief. If you oppose, the court will set a hearing and come up with a decision based on the facts presented.

20 Years of Helping People Achieve Financial Freedom!

At Huebner Law Firm, PC, we help people every step of the way when filing for bankruptcy. We know that it can be fearful and overwhelming; that is why we help you reclaim control over your financial situation. We have an in-depth understanding of bankruptcy laws and how it affects your finances and your future. With our team by your side, you can rest assured that we’ll explore every possible avenue to help you keep your assets while rebuilding your financial security.

Our initial consultations are free, and starting your case requires no upfront payment. Contact us today at (817) 576-1889 to speak with our attorney!

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