But I Can’t Lose My Car!
By Peter Orville, Attorney at Law on Mar 7, 2008 in Benefits of Bankruptcy, Foreclosure Issues, General Bankruptcy Information, Personal Finance, Surrendering Property, Vehicles
Think about giving up your vehicle when you file bankruptcy if you owe more than the vehicle is worth.
Some days it seems that more of my clients tell me they MUST keep their car than tell me they can’t lose their home. “How will I get to work?”… “I need a reliable vehicle”… ”I can’t lose my vehicle”. Clearly they need A vehicle, but do they really need THAT vehicle?
The used car market is being flooded with cars, many of which were taken by the repo man.
We have all heard about the home foreclosure crisis, but you should be aware of the huge increase in auto repossessions. The Boston Globe reported today that auto-loan defaults have reached a 10 year high, and some auto auction companies are seeing repossessions nearly triple in February compared to last February.
Kent Anderson, an Oregon Bankruptcy Lawyer wrote about the Auto Finance Trouble recently on www.debtlawnetwork.com. Auto lenders are having the same trouble the mortgage lenders are having. But as of now, even with bad credit, you can probably find a decent auto where you are paying its true value.
Before you file bankruptcy, shop around for a replacement vehicle. You may find that you can replace your “unreplaceable” car with something at least as good for a much lower payment.
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