Q: i owe twice the amount the car is worth i cant keep up with payments, not had a whole yr. got screwed Bankruptcy?
i am 36 yr old woman went to carlot alone & got talked into getting a car thats worth 10,000 for 18,000. i havent had the car 7mo dont wont to buy do i need to file bankruptcy or am i stuck or what?
A: A bankruptcy can be a useful tool in this situation. You could discharge the debt in a Chapter 7 bankruptcy and surrender the car. Alternatively, you might be able to get a redemption loan to pay off the vehicle through the bankruptcy for its fair market value. Talk to a local bankruptcy attorney and they can go into more details about the pros and cons of bankruptcy and the specifics on how redemption works.
Jeffrey William Narmore and Bruce Alexander Minnick agree with this answer
A: Mr Dray's answer is a good one. If the loan is only seven months old you cannot use Chapter 13 to reduce the loan balance, though you could possibly reduce the interest. Redemption in a Chapter 7 case would left you pay the current value of the car in a lump sum, a workable solution for people with access to funds or a source of financing. Surrendering the car gets you out of paying for the car, but you will need to have a plan for obtaining other transportation. A bankruptcy attorney could help you look at your total financial picture to determine if bankruptcy is a sensible solution to this problem, and whether Chapter 7 or 13 is the better way to go. I am sorry this happened to you, and wishing you the best.
Bruce Alexander Minnick agrees with this answer
A: Yes you need to file bankruptcy in order to not have to pay the loan. However, you may be able to file a Chap. 13 bankruptcy and do a “cram-down.” i.e., you would only pay what your car is worth PRESENTLY (forget what the dealer SAYS you owe) and, the way cars lose 25-50% of their value 5 minutes after you drive them off the lot, you just might get to pay a LOT LESS , including a lower interest rate on the car you obviously really liked or wouldn’t have bought! Talk to a local bankruptcy attorney about filing a Chapter 13 for you! Good luck!
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