Does the automatic stay in Chap. 7 and 13 bankruptcies apply to repo’s of collateral on secured loans?

Question by paralegaltechnik: Does the automatic stay in Chap. 7 and 13 bankruptcies apply to repo’s of collateral on secured loans?
I understand the secured creditor usually maintains their right to reposess collateral even if the debt is discharged. I’m wondering if the stay will help a debtor hold onto collateral during the proceedings…For example, a car they may need to get to work but that is in jeopardy of reposession.

Best answer:

Answer by webned
Yes , the automatic stay applies to everything, however, it is no major ordeal for a creditor to move the court to lift the stay concerning specific security, and such motions are typically granted. With respect to the car question, typically a debtor would not attempt to discharge the note on the car, or would ratify the debt to prevent the repossession.

What do you think? Answer below!

The Handbook of Loan Syndications and Trading The First Guide to Understanding and Capitalizing on the $1 Trillion-Plus Loan Syndications and Trading Market! … Price: 129.95

Zombie-Loan, Vol. 3 (v. 3) Though Chika and Shito manage to extract the girls from the clutches of the Butterfly Killer’s fans, the case takes a shocking turn when an unexpected betrayal is revealed! With heavy hearts, the members of Z-Loan close the case, but… Price: 10.99