How to Get Rid of a Car Loan Deficiency
When you have little money, you start borrowing from lenders to meet your financial needs. You borrow for your house, your car, and much more. All of the debt starts to pile up when you are unable to get the monthly payments on time. The lenders that do not receive their payments become angry and start to repossess your assets. Most commonly, lenders repossess your car when you stop making payments and the debt you owe to these lenders rockets higher than the original value of the car. In this case, the car lenders have the right to ask you to pay the remaining amount of debt often known as a car loan deficiency.
You Can Be Sued
When you take a car loan, you need to make monthly payments to get rid of the debt. Many people can find themselves unable to make their monthly payments. In turn, the car lenders become frustrated and are left with the only option of repossessing your car. Even if they sell your car, they will not get the amount equivalent to your debt. The amount of debt left after selling the car is called car loan deficiency and the lenders will come after you to recover that.
Of course, you don’t have enough money and that is the reason you skipped several payments. You will still be liable to pay to your car lender, and if you refuse, the enraged lenders will sue you. A lender can also get the money you owe by garnishing your wages or placing liens on your wages. They will get their money through any means legally available to them, and you will end up losing much more than expected.
Bankruptcy Can Save You
The only option left after getting sued by your car lender is to file for bankruptcy. Declaring bankruptcy can save your assets and also help you get rid of a possible lawsuit. Discuss your options with us at Biloxi Bankruptcy Lawyer in our no-commitment consultation, and once you learn of the tools and strategies available to you, we can walk side-by-side with you through the bankruptcy process. This will save you from the wrath of the lenders and you will also be able to save your car if it isn’t taken already.
A Better Option
Filing for bankruptcy will also help you wipe out the car loan deficiency entirely. Whether you file for Chapter 7 or Chapter 13 bankruptcy, all of your assets will be safe including your car. Upon filing for bankruptcy, you can take advantage of the automatic stay. This way, the lenders will be prohibited from seizing any of your assets -including your car. Your car loan deficiency will also be revoked.
Filing for bankruptcy can often mean saving yourself and your property from the cruelty of lenders. Many lenders will go to any extent to get their money back. If you know you can’t pay the debts, call us today and find your solution. Lenders can create a lot of problems if you miss their payments, so you should go for preventive measures and get to know more about how bankruptcy can work for you.