Will filing for bankruptcy stop repossession?

Filing for bankruptcy in California will stop repossession in the short term. Generally, when a debtor files for bankruptcy, an order known as an “automatic stay” will be put in place. This prevents most creditors, including those attempting to repossess assets, from taking any further action against the debtor. However, a creditor may still be able to repossess assets even if the debtor has filed for bankruptcy. For example, if the loan that was used to purchase whatever assets are being repossessed was not included in the bankruptcy filing, the creditor could still pursue repossession. In addition, the creditor may be able to seek permission from the court to continue repossessing assets even if the bankruptcy filing was successful. Ultimately, filing for bankruptcy in California may be able to stop repossession, but it is not a guarantee. If a debtor is facing repossession, they should seek legal counsel to determine the best course of action moving forward.

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Will filing for bankruptcy stop repossession?

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