Under the Arizona bankruptcy protection law, the bank may not repossess a vehicle without first getting permission from the court once a Chapter 7 or Chapter 13 bankruptcy petition has been filed with the bankruptcy court. A Chapter 13 filing may lower an auto loan payment and eliminate loan defaults through a payment plan which pays creditors and loan payments.
It is possible to keep your vehicle in a Chapter 7 Bankruptcy
In many situations, it is possible to keep your vehicle in a Chapter 7 bankruptcy, as long as you remain current on your loan. A bankruptcy attorney at our firm can help to stop repossession in Arizona.
Automatic Stay Protection
When you are behind on vehicle payments to your lender, typically a repossession action is taken. Your auto may be repossessed by the lender at any time. How does filing bankruptcy stop repossession? Filing bankruptcy stops the effort to repossess. Debtors are entitled the protection of the automatic stay in Chapter 7 and Chapter 13 bankruptcy cases. This means the automatic stay provision immediately stops creditors and lenders from any debt collection, including vehicle repossession. Also, if you have filed bankruptcy with the Arizona Bankruptcy Court, no legal action cannot be taken against you.
Bankruptcy Exemptions in Arizona
Arizona bankruptcy exemptions are available that can be applied to the equity of your vehicle. An Arizona Zero Down Bankruptcy attorney will discuss these exemptions and how they apply to your specific debt situation. Our attorneys are experts at navigating the bankruptcy filing process, which can be complex depending on the case. No matter the financial issues, our legal team will find the best method of debt relief for your unique case.