Will filing for bankruptcy stop repossession?

Filing for bankruptcy will not necessarily stop repossession, though it may temporarily delay the process. When a person files for bankruptcy in Washington, their assets are immediately protected by an "automatic stay." This means that creditors must stop any collection activities, such as repossession, until the case is resolved. However, creditors can file for a motion of relief from the automatic stay if they believe that the asset held is not necessary for the bankruptcy case. This means that creditors could go ahead with the repossession process even though the debtor has filed for bankruptcy. It is important to note, however, that creditors must give written notice of the motion and provide evidence as to why the asset is not necessary. The debtor can also respond to the motion. In some cases, Chapter 13 bankruptcy may be a better option than Chapter 7 bankruptcy to stop repossession. Chapter 13 bankruptcy allows debtors to create a payment plan that helps them pay off their debts. The payment plan would include a payment of the past-due amount on the secured debt, which the creditor may be more willing to accept than if the debtor simply filed for Chapter 7 bankruptcy. This can help the debtor stop repossession and keep the secured asset. In summary, filing for bankruptcy will temporarily stop repossession, but creditors may be able to file for a motion of relief from the automatic stay, meaning the repossession process can continue. Therefore, Chapter 13 bankruptcy may be the best option for debtors who wish to keep their secured assets.

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Will filing for bankruptcy stop repossession?

Will filing for bankruptcy stop repossession?

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