Car loan providers should have an elementary comprehension of an individual personal bankruptcy processes. A key component of any consumer case of bankruptcy ‘s the automated stay. The newest “automatic stay” ‘s the term of injunction one to arises immediately upon brand new submitting of any bankruptcy proceeding. This new stay inhibits loan providers out-of, among other things, seeking to collect toward an obligations that arose before the bankruptcy filing. A lender just who willfully violates brand new automatic stand years, also punitive injuries.

Inside a section 13 consumer bankruptcy proceeding, the brand new automated sit extends to co-debtors. “Co-debtors” tend to be co-borrowers and you may co-signors regarding user debts. Continue reading Exactly what Financial institutions Ought to know Co-Debtors inside Part 13 User Bankruptcies →