When you file a Chapter 7 Bankruptcy, all of your creditors are prohibited from taking collection action against you. This includes repossessing your car. However, if you are not current on your car payments or if you do not have the required insurance coverage on the car, the creditor will be able to go to the bankruptcy court and get permission to take your car. In addition, you will have to tell the creditor what your intention is regarding the car. You have the option of reaffirming the car loan, redeeming the car or surrendering the car.
It is important that you understand your rights regarding your car loan. Don't attempt to do this on your own, you need an experienced bankruptcy attorney to walk you through this process.
Contact Hampton Roads Legal Services at 757-320-2010 today and we will make sure that you know what the best way to keep your car is in a bankruptcy.