Q: I have a lot of negative equity debt from an old repossessed car loan. I have no income or assets, what can help w/ this
In Oregon, I had an old car that broke down but somehow skirted around my comprehensive, gap, and insurance coverage. I was in a desperate situation and the car it was replaced with was overly expensive and I ended up with $12k of negative equity on top that I wouldn't have been able to mitigate with monthly payments until over 8 years had passed from the date of sale. I couldn't afford the payments and it was ultimately repossessed and sold so the debt had $19k paid back into it.
Everything is in a downturn at the moment. I have no income, no assets, and I'm fighting to continue my career and education. What are steps I can take to protect myself in this situation from being sued for the debt in the future if I cannot make any payments still?
I have only this debt and student loans, so would it be worth it to consider bankruptcy or just letting it age past the statute of limitations since I have no assets they could take?
A: Consult a competent bankruptcy professional to assess your current financial situation. Give n your status, Chapter 7 might be just right for you.
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