If a lender sells a repossessed or surrendered car at auction, the selling price may not cover the entire loan balance. If it doesn’t, the amount left over is called a car loan deficiency.
A Chapter 13 bankruptcy involves committing to a repayment plan with your creditors over a three- or a five-year period. That’s a long time, and you may find that you need to finance a vehicle while you are in the middle of the bankruptcy. It’s possible to get approved for an auto loan during a Chapter 13 bankruptcy, but there is a procedure that must be followed.
If you really need to purchase a car before filing for bankruptcy (BK), it might be possible for you to do so. There may even be some advantages that come with buying a vehicle pre-bankruptcy.
For some consumers dealing with serious debt, bankruptcy is a good solution to their problems. However, filing for bankruptcy (Chapter 7 or Chapter 13) isn’t the right move for everyone who is struggling financially.
It is a last resort measure, but Chapter 7 bankruptcy can leave you with a fresh start and an opportunity to rebuild your credit from the ground up.
If you file for a Chapter 7 bankruptcy, what will happen to your vehicle? Most Chapter 7 filers have to decide whether they want to keep their car or surrender it to the lender.
The Detroit metropolitan area is the biggest in Michigan in terms of size and population. It is well known as the home of many automakers and is a key part of the U.S. economy.