What to do if I’m in Chapter 7 and have not made a car payment in 7 months but my car has yet to be repossessed?

What are they up too when they do this and can I keep driving it after it gets resolved. I’m very confused.

Asked on May 10, 2015 under Bankruptcy Law, Florida


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

They can't repossess during the "automatic stay" period after file Chapter 7, so that may be why they have not done anything. However, once that stay--or temporary halt to collections activities--is lifted, they will be able to repossess, if they choose. (They may choose not to, if they feel that the value of the car is sufficiently low that that they'd spend more on the repossesson process then they get by taking it back and selling it.) You can keep driving until and unless it is repossessed.

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