Afraid of LOSING YOUR CAR? Avoid Vehicle Repossession Through Bankruptcy

TL;DR

A spike in car repossessions is becoming a serious issue, but filing for Chapter 7 or Chapter 13 bankruptcy can offer solutions.

Transcript

hey everybody john skiba here from the consumer warrior youtube channel and today i'm going to talk about car repossessions this is something i've been reading a lot about online that here in the summer of 2022 we are starting to see a huge spike in the number of vehicles that are being repossessed i want to talk about how you can deal with that th... Read More

Key Insights

• 🤨 Car repossessions have increased significantly in summer 2022, raising concerns about the economy.
• 🚙 Chapter 7 bankruptcy can eliminate car loan debt, but you cannot keep the vehicle.
• 🚙 Chapter 13 bankruptcy offers the opportunity to catch up on missed car payments and potentially pay the vehicle's current value instead of the total owed.
• 😨 Acting quickly and seeking legal assistance is essential when dealing with car repossessions to maximize your options.
• 😮 Factors like car shortages, inflation, and financial difficulties from the pandemic have contributed to the rise in repossessions.
• 😀 Chapter 13 bankruptcy provides a chance to keep the vehicle and create a repayment plan, making it a suitable option for those facing repossession.
• 🥅 The two bankruptcy options provide different benefits depending on your financial situation and goals.

Questions & Answers

Q: Why are car repossessions increasing recently?

Several factors, including a scarcity of cars, inflation, financial struggles due to the pandemic, and increased funds from stimulus money, have led to higher car prices and payments, causing more repossessions.

Q: How does Chapter 7 bankruptcy help with car repossessions?

Chapter 7 bankruptcy can't directly help you keep the car, but it eliminates the debt associated with the vehicle, providing a fresh start without the obligation to repay any balance after repossession.

Q: When is Chapter 13 bankruptcy a better option for dealing with car repossession?

If your car is still in your possession and you want to catch up on missed payments, Chapter 13 bankruptcy allows you to propose a repayment plan over five years, potentially including a cram down if the vehicle is worth less than what you owe.

Q: Can Chapter 13 bankruptcy help if your car has already been repossessed?

Yes, if your vehicle was repossessed less than two weeks ago, filing for Chapter 13 bankruptcy promptly may enable you to regain possession and create a repayment plan to bring the loan current over a period of up to five years.

Summary & Key Takeaways

• Due to a shortage of cars, inflation, and financial difficulties caused by COVID-19, car repossessions are on the rise, potentially indicating an economic problem.

• Chapter 7 bankruptcy is suitable for eliminating unsecured debts, while Chapter 13 allows you to keep the car by proposing a repayment plan over a period of up to five years.

• Filing for Chapter 13 can also offer the possibility of a cram down, where you pay the vehicle's current value instead of the total owed.