Q: If I default on a car loan in Oregon and they sell the car the amount they resold it for goes on on my principal?
A: This is a really bad idea. Car lenders will go for a fast sale which is often below what you owe on the car then they will sue you for the balance you still owe. If there is anyway you can sell the car and pay off the loan even if you just break even, that would be the better way to go. If you just can't do that but you want to keep your car, you might want to talk to a Chapter 13 bankruptcy specialist. They may be able to put you in a bankruptcy plan that only requires you to pay the used value of the car (this is called a cram down) and it may even lower your monthly payments. You can then keep your car and the Chapter 13 will also help you deal with any other debts you have, discharging some of your unsecured debts if you successfully finish your payment plan.
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