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Repossessions

Filing Bankruptcy can stop the repossession of your car, motorcycle, boat and other assets. Chapter 7 bankruptcy or Chapter 13 bankruptcy stops repossession under the automatic stay provisions of the U.S. Bankruptcy Code. A reaffirmation agreement must be signed and you must catch up on your payments to keep your assets. Filing Chapter 13 bankruptcy will give you three to five years, depending on your debt repayment plan.

Debt renegotiation may be an option. For example, if you owe more than your car is worth you may be able to renegotiate the outstanding balance that will have to be paid and it may be possible to renegotiate the applicable interest rate as well.

Act fast to stop repossession. Under Florida law, once an asset has been repossessed filing bankruptcy will not allow you to get it back from your creditor. And if you are successful in reaching an agreement with your creditor to avoid repossession subsequently missing a payment will nullify your bankruptcy agreement and allow your lender to waive the automatic stay provision. If you were making payments via your checking account make sure those payments were not stopped during the bankruptcy filing process. And be sure to check with the lender to see if difference payment arrangements apply after filing for bankruptcy protection.

For at least six months after your bankruptcy case you should pay by certified or treasurers check, as these forms of payment cannot bounce. Again, send your payments by certified registered mail and get a receipt. This will provide proof your lender was paid.