Eliminate Car Debt

After repossession, the owner of the vehicle normally becomes liable for the storage costs of the car and the remaining deficiencies in the account including any damage to the car and the outstanding loan on the car.

It is best to pay the loan timely and if you are past due on the car, get caught up before the automobile is repossessed. If the car is repossessed, you may be able to reinstate or renegotiate the loan with the lender before the car is auctioned which is the next step after the car is repossessed and there is a failure by the owner to get caught up on what is owed including trying to work out a repayment plan if you cannot pay all missed payments and late fees at once. 

If the car is ultimately sold at auction, as the owner, you are liable for the difference if the car sells for less than what the Buyer owed on the Car loan plus the storage costs, plus any damages and costs incurred as the result of the repossession, The car repossession stays on your credit report for 7 years.

Nonetheless, Filing for Bankruptcy may be a good option if you owe money for a car repossession plus other debts such as credit card, medical and personal loans that have become unmanageable. 

If you qualify for a Chapter 7 Bankruptcy which is a Personal Bankruptcy often all of these debts can be eliminated as well as the negative record on your credit report for failure to timely pay and the repossession.. The filing of the Chapter 7 Bankruptcy and successful discharge of these debts from the Bankruptcy Court will eliminate the car repossession debt plus most if not all of your other outstanding debt not including for example student loan debt and Federal and State Income tax liens. This will allow you to start with a clean slate so that within a year or two you may be able to increase and improve your FICO score so that your credit score is much better if not considered Good or Excellent. Even though the Chapter 7 Bankruptcy remains on your credit report for 7-10 years, you can improve your FICO score often within a year or two after receiving a Bankruptcy Discharge so that your credit score becomes good to excellent..

Speaking with a Chapter 7 Bankruptcy Attorney will help you determine if filing for a Personal Bankruptcy is in your best interest and will help you eliminate all or most of your debt and start with a clean slate so that your Financial LIfe can begin again..With our office, the first consultation is free. We are happy to meet with you in order to provide important information.