Long Island Bankruptcy Attorney
Repossession occurs when a creditor takes back an item that was purchased on loan, rented or used as collateral. If the debtor defaults on his or her payment agreement with the creditor, repossession may occur, though the debtor is typically notified beforehand. Repossession is most commonly associated with cars, trucks and other motor vehicles, but it may also involve any type of property that was leased or rented. In some ways, foreclosure could be looked at as the repossession of a home, as the bank essentially takes the property back from the debtor.
There are different ways to potentially avoid repossession in the first place, and a Long Island bankruptcy attorney at our law firm can discuss these with you. For example, if you have already fallen behind on your car payments and have been threatened with repossession, you may consider whether filing for bankruptcy would be a viable option to stop debt collection efforts. In some cases, the creditor may be willing to negotiate with you, but if you have had issues with this or believe that you have been the victim of creditor harassment or other illegal conduct, our Long Island bankruptcy lawyer may be able to help you in filing suit against the creditor for their actions.
Filing for bankruptcy places an automatic stay on all debt collection efforts against you, including the repossession of a vehicle or other property if it has not yet been taken from your possession. Chapter 13 bankruptcy in particular may allow you to reorganize your debt in order to work out a payment plan that will allow you to make up past payments and protect your property from being surrendered to the bankruptcy court, as may occur in a
Chapter 7 bankruptcy if that property is not protected from liquidation.