Legal Question in Bankruptcy in Louisiana

Re: Repossesion

Yes, you can still file bankruptcy on your car. However, as a secured creditor, the financial institution does not have to let you reaffirm the debt and can then take the car.

Re: Repossesion

Dear Law Guru Friend,

Yes, the fact that a suit has been filed against you does not prevent your still filing a petition in bankruptcy; and if you do so, all legal proceedings against you are automatically stayed. You will continue to possess the car until the bankruptcy trustee either takes it away from you, or the creditor (mortgage holder) obtains a "lift" of the automatic stay. Once done, the creditor could then proceed to seize the car in the usual manner. If the creditor (mortgage holder) attempts to foreclose on the mortgaged vehicle in the bankruptcy proceeding, the trustee will tell you if and when to surrender it. Of course, if you want to keep the vehicle, even after bankruptcy, you must catch the payments up to date and work out an arrangement with the creditor (mortgage holder) to reaffirm the mortgaged indebtedness. The old saying is that you can't have your cake and eat it too. If you want to keep the vehicle, you have to pay for it. But the fact that a suit has already been filed does not keep you from filing bankruptcy to at least stop the foreclosure proceeding. Perhaps once you have declared bankruptcy and discharged your other debts, you will have the money to catch up your car notes and keep your car. There is more to it than this, but this is something to think about.

Best of luck!

Sincerely,

Hardy Parkerson, Atty.

Lake Charles LA