| Bankruptcy Law - Questions & Answers
Will bankruptcy stop
a foreclosure proceeding or prevent repossession
of my car?
Temporarily, yes. However, the
lender is entitled to apply to the court for permission
to continue foreclosure proceedings or repossession.
This is called requesting relief from the automatic
stay. If you file a Chapter 7 case, you may be
able to arrange with the creditor to catch up
the payments. If you file a Chapter 13 case, the
past due payments can be included in the Chapter
13 and paid over time. Often, a Chapter 13 is
the better choice for debtors facing foreclosure
or repossession.
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