Many individuals need their car for more than just convenience. It is there only way to get to their place of employment. Individuals who own a car and are thinking of going bankrupt worry about whether their car will be repossessed.
For those that have already started the Chapter7 bankruptcy proceedings, the car cannot be repossessed during that time. The lender for the vehicle can petition the courts for permission to take it, however. The automatic stay is the rule in the bankruptcy that prevents the creditor from just going ahead and repossessing like they normally would if there were no bankruptcy action in place. Creditors are not allowed to contact debtors during a bankruptcy action.
To be sure of what your rights are during your bankruptcy you should use a good quality Fairfield bankruptcy attorney to help you with your bankruptcy proceeding. If the creditor is intent on repossession of the vehicle he has to go through legal channels by filing a motion for relief from the automatic stay. You will have a certain amount of time to contest this request.
If there have been any mistakes made on the part of the creditor then the request could be denied. If not, you may be given a chance to negotiate some terms with the creditor. If your refuse to negotiate or you are not making any plans to catch up your payments then the creditor may be granted the right to repossess your vehicle. Hopefully the overall relief that you receive from a successful bankruptcy will put you in a better financial position to make your car payments.