If you are facing foreclosure or repossession of your car, filing for Chapter 13 bankruptcy can help to stop these processes. When you file for Chapter 13, an automatic stay is imposed under section 362 of the bankruptcy code. This automatic stay stops all collection activities, including foreclosure and repossession proceedings.
However, it is important to note that the automatic stay is only temporary, and it may only last for a period of 30 days unless the court grants an extension. If you want to keep your home or car, you will need to make the required payments and meet the terms of your bankruptcy plan.
It is worth noting that there are some exceptions to the automatic stay. For example, if you have filed for multiple bankruptcies within the past year, the court may decide not to grant the automatic stay or to limit its duration. In these cases, it may be necessary to go to court and request that the automatic stay be extended or imposed.
Overall, Chapter 13 bankruptcy can be a useful tool for those facing foreclosure or repossession of their car. By filing for bankruptcy and taking advantage of the automatic stay, it is possible to get temporary relief from these collection activities and to come up with a plan to pay off your debts. It is important to consult with a bankruptcy attorney to understand the specific laws in your jurisdiction and to determine the best course of action for your specific situation.