Bankruptcy And Car Repossession

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Summary

Filing for bankruptcy in New York State triggers an automatic stay, preventing immediate car repossession. However, creditors can petition to lift the stay. In Chapter 7, the stay typically lasts 4-6 months but can be lifted earlier. Courts often grant these requests if creditors show theyre not adequately protected, such as when payments are missed or collateral value decreases. In Chapter 13, you might lower car payments by extending the loan term, reducing interest rates, or cramming down the loan. You will be notified if a stay is lifted, and you can monitor your case through the courts electronic system. Consult a bankruptcy attorney for personalized advice.

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Nys
In New York State, if you file for bankruptcy:
*. An automatic stay prevents creditors from repossessing your car immediately.
*. However, lenders may petition the court to lift the stay.
*. Your ability to keep the car may depend on your equity in it and the bankruptcy chapter you file.
You should consult with a bankruptcy attorney for personalized advice.
So if I file chapter * how long is the stay for?
In Chapter * bankruptcy, the automatic stay lasts until the case is closed, typically about *-6 months. However, creditors can ask the court to lift the stay earlier. Please consult a bankruptcy attorney for your specific situation.
Is it normal that they ask for the stay to be lifted
Yes, it's common for creditors to ask the court to lift the automatic stay if they believe their rights are being harmed. It's up to the court to decide whether to grant this request.
Do courts normally grant it
Yes, courts often grant a request to lift the automatic stay if the creditor can show they're not adequately protected. However, it depends on the specifics of your case. Consulting a bankruptcy attorney can provide detailed guidance.
How is a creditor not being protected
A creditor may not be adequately protected if:
*. The debtor is not making regular payments.
*. The value of the collateral (the car, in this case) is decreasing significantly.
*. The collateral is not insured.
These factors might convince a court to lift an automatic stay. For more detailed advice, consider consulting a bankruptcy attorney.
Can you get car payments lowered in bankruptcy court
In a Chapter * bankruptcy, you might be able to lower your car payments by:
*. Extending the loan term.
*. Reducing the interest rate.
*. 'Cramming down' the loan to the car's current value.
Please consult a bankruptcy attorney for advice tailored to your situation.
How will I know if a stay is lifted
You will be notified by the court if a creditor successfully petitions to lift the automatic stay. You can also monitor your case's progress through the court's electronic case filing system. Please consult with your bankruptcy attorney regularly for updates.