If you are behind on car payments, you may be able to use bankruptcy laws to keep your vehicle in your possession.
Both types of personal bankruptcy address cars, car loans and vehicles you own outright:
- The automatic stay in bankruptcy is designed to stop repossession. In most cases, this goes into effect right after you officially file for bankruptcy.
- Chapter 7 bankruptcy exemptions may protect your car from a forced sale.
- Filing for bankruptcy under a Chapter 13 may allow you to repay your car loan at a more affordable rate so that you don't lose your car to collectors.