Will filing for bankruptcy stop repossession?

Filing for bankruptcy can sometimes stop repossession, depending on the situation in Massachusetts. The best way to determine if filing for bankruptcy is the right decision is to consult with an experienced bankruptcy lawyer. In Massachusetts, filing for bankruptcy will stop repossession if the creditor is prevented from taking your property. This is done through an “automatic stay” which is a court order that generally stops creditors from collecting a debt from the person who filed for bankruptcy. This includes preventing the repossession of personal property, such as a car or furniture. However, if the creditor already has a lien on the property, the lien will remain after the bankruptcy is completed. In such cases, the creditor may still be able to repossess the property, even after the bankruptcy is filed. Additionally, if a debtor is behind on payments for secured debt, such as a car loan, the creditor may be able to obtain permission from the bankruptcy court to repossess the vehicle. Finally, if a creditor has already repossessed the property before the bankruptcy is filed, they may still be able to keep it, even if the bankruptcy is successful. Therefore, whether filing for bankruptcy will stop repossession in Massachusetts depends on the specific situation. An experienced bankruptcy lawyer can provide more information on the consequences of filing for bankruptcy and how it will affect repossession.

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Will filing for bankruptcy stop repossession?

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