Will filing for bankruptcy stop repossession?

Filing for bankruptcy protection in Virginia can help stop repossession of certain possessions, depending on the type of bankruptcy you file. Depending on the type of bankruptcy you file, you can stop the repossession process while your case is pending. For instance, if you file a Chapter 7 bankruptcy, the “automatic stay” provision of the Bankruptcy Code generally protects your possessions from repossession. This means the lender is not allowed to continue repossessing items during the bankruptcy case. However, if you file a Chapter 13 bankruptcy, you might still be able to stop repossession by setting up a payment plan with the creditor. As long as you follow the payment plan, the creditor may not be allowed to repossess the item. It is important to note, however, that if you file a Chapter 13 bankruptcy and the court approves a repayment plan that does not include funds for the creditor, the creditor can still repossess the item. Therefore, you should discuss your specific situation with a qualified bankruptcy attorney to determine what type of bankruptcy to pursue and how to protect your possessions from repossession.

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Will filing for bankruptcy stop repossession?

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