Earlimart, CA Bankruptcy Law Firms & Lawyers

Maybe you misunderstood the letter because the credit union cannot repossess the vehicle if you are current on the payments (unless the bankruptcy court give them permission to do that which will not be given if you are current on payments). Maybe they want you to "reaffirm" the debt which means entering into a new contract with the credit union for the car loan under the same terms and have the bankruptcy court approve it. Generally reaffirmation is not necessary but you need to discuss with an attorney if you should do that. Your car cannot be repossessed without permission from the bankruptcy court. If the credit union is asking for permission from the court to repossess your car then that would be because they claim you are not current with the payments and you can go to the hearing and take proof that you are current so that the bankruptcy court will not give the credit union permission to repossess your car. To get permission to repossess the car the credit union has to file a "motion for relief from the automatic stay" and send you a copy of the motion papers and tell you the date of the hearing in court so that you can attend and oppose the motion.

1. If the lease has expired, the automatic stay does not stop the eviction. [Sec. 362(b)(10)] 2. If the writ of possession has been entered in the state court BEFORE the bankruptcy is filed, the automatic stay will not stop eviction. [Sec.362(b)(22)] 3. Under some State laws, you may be able to delay the eviction for 30 days, provided you comply with the requirements of Sec. 362(l).

Most people are eligible to file Chapter 7 with the help of a bankruptcy attorney. I suggest you consult with a bankruptcy attorney to discuss the details of your particular situation.