Will there be a collection attempt on my auto loan while in bankruptcy?

You do not have to be concerned about a collection attempt after auto loan payments are included in your bankruptcy case. One of the benefits of filing bankruptcy is the protection afforded by the automatic stay.

When you file any type of bankruptcy case, your creditors are immediately bound by the terms of the automatic stay. This protective measure prevents the parties that you owe from taking any action to collect any portion of the debt that you owe them. It does not matter how far overdue your payments are. Furthermore, despite the fact that you may be in possession of property that has not been paid for, such as your vehicle, the lender may not attempt to repossess it.

When filing for bankruptcy, if there is a balance due on your vehicle loan, and you keep it, you will need to make monthly payments. If you miss payments or stop paying, the lender should not make any direct collection attempts. However, the trustee who is handling your case is likely to become aware of your delinquency and may take action on behalf of the lender.

This answer should not be viewed as comprehensive. To get a full explanation of how bankruptcy will affect your relationship with your auto lender, contact an experienced bankruptcy lawyer.