If you are in debt and considering bankruptcy, one looming fear is the possibility of repossession. For those who are in debt and are unable to pay them off, the repossession of assets is a possibility that will be difficult to completely avoid until the process is over.
With that being said, there are several different factors that play into bankruptcy and repossession. There are times when you make enough money to avoid forfeiture of assets, but more often than not, repossession will at least play a role in your repayment efforts. This is typically done through chapter 7 bankruptcy filings, and in today’s post, Groce & DeArmon will walk through what you need to know about bankruptcy and repossession.
Any Item Can Be Repossessed — If It Was Purchased Via Loan
When it comes to bankruptcy and repossession, people often think of cars. While cars are the item most likely to be repossessed and the item that we see repossessed the most often, it is not the only item that can be taken. In fact, any item that you purchased via loan and are still paying for can be repossessed.
This includes your car, television, appliances, or even instruments. You name it. If it was purchased through a loan and you are still paying that loan off, repossession is a possibility.
Filing For Bankruptcy Enacts An Automatic Stay
One of the benefits of filing for bankruptcy is that it will place an automatic stay on any repossession processes that you and your property are currently subject to. This doesn’t eliminate the possibility of future repossession, but this is an example of how bankruptcy and repossession often work to balance each other out. Filing for bankruptcy allows you and your family some time to figure out your financial situation before having property repossessed.
It is important to understand this stay from a legal standpoint because it makes any repossessions illegal. If your property is repossessed during this stay, alert your bankruptcy and repossession lawyer immediately.
Chapter 7 Bankruptcy Exchanges Property
Chapter 7 bankruptcy is the most common chapter of bankruptcy in the United States, and it is centered around the exchange of nonexempt property for the discharge of debts. Exchanging property for discharge isn’t exactly a repossession, but it’s important to know that loss of property is a legitimate possibility when filing under Chapter 7.
Filers of Chapter 7 bankruptcy will almost always leave the courts with less stuff than they had before they entered. This is a viable alternative to repossession if you are eligible because it allows you to gain a bit of control over what you will lose and makes sure that you don’t lose essential assets.
Contact Your Bankruptcy and Repossession Lawyer Today
If you are facing bankruptcy and repossession, it is crucial that you get in contact with an attorney to represent you immediately. At Groce & DeArmon, we specialize in bankruptcy claims, specifically Chapter 7 and Chapter 13, and we would love to help you. Give us a call at (417) 862-3706 or contact us online to schedule a free consultation.