Will filing for bankruptcy stop repossession?

Filing for bankruptcy may help stop repossession in South Carolina. A bankruptcy filing creates an "automatic stay" which, among other things, prohibits creditors from attempting to collect against a debtor. This means that creditors must halt all collection activities, including repossession. Additionally, if a debtor reaffirms a debt as part of a bankruptcy, the creditor must follow the payment plan that was negotiated and cannot repossess the property. This happens most often with car loans. However, filing for bankruptcy does not always stop repossession. In some cases, the creditor may be able to obtain what is called a "relief from stay". This is a court order that allows the creditor to proceed with the repossession of the property. Additionally, non-bankruptcy alternatives may also be available. If the debtor is able to pay off the debt or make arrangements to keep the property, then the creditor may be persuaded to drop repossession proceedings. Overall, filing for bankruptcy may help to stop repossession in South Carolina. However, it is important to discuss the specifics of your situation with a bankruptcy attorney to understand how to best protect your assets.

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Will filing for bankruptcy stop repossession?

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