Will filing for bankruptcy stop repossession?

Yes, filing for bankruptcy can stop a repossession in North Carolina. In North Carolina, filing for bankruptcy gives you an "automatic stay," which is a legal protection that halts most types of collection activities. This includes repossessions. By filing for bankruptcy, the creditor can no longer legally repossess your property while the bankruptcy is pending. That said, some forms of repossession may not be halted by a bankruptcy filing. If the repossession was already in progress before filing for bankruptcy, the repossession may still happen. Additionally, certain types of property, such as tax liens, are not covered by the automatic stay and can still be repossessed, even if you have filed for bankruptcy. Finally, even if you have filed for bankruptcy and the automatic stay is in effect, you may still lose your property if you fail to keep up with your payments. A creditor can ask the court to lift the automatic stay to proceed with the repossession. If the court grants the creditor’s request, your property can be repossessed. In conclusion, filing for bankruptcy in North Carolina can stop repossession from happening, but it may not always be successful. Some forms of repossession are still allowed even with an automatic stay, and the creditor can still repossess your property if they can persuade the court to lift the automatic stay.

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Will filing for bankruptcy stop repossession?

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