Bankruptcy can potentially help with car repossession by providing an automatic stay, which temporarily stops most collection actions, including repossession, while the bankruptcy case is pending. However, in Chapter 7 bankruptcy, the individual may have to surrender the car if they cannot afford to continue making payments. In Chapter 13 bankruptcy, the individual may be able to keep their car by catching up on missed payments over a three- to five-year period. Whether bankruptcy helps with a car repossession depends on the individual’s specific circumstances and the type of bankruptcy they file.
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