West Bend, WI asked in Bankruptcy, Consumer Law, Banking and Lemon Law for Illinois

Q: I have a car that I owe more than 10 thousands of dollars that I cannot drive because of numerous mechanical problems.

What are my best options since I cannot afford to pay to fix car and make my loan payments. I live in Loves Park, Illinois.

2 Lawyer Answers
Timothy Denison
Timothy Denison
  • Bankruptcy Lawyer
  • Louisville, KY

A: Consult a bankruptcy attorney to evaluate your financial situation and determine whether bankruptcy and/or what chapter bankruptcy might help get you from under this debt.

James L. Arrasmith
James L. Arrasmith pro label Lawyers, want to be a Justia Connect Pro too? Learn more ›
  • Bankruptcy Lawyer
  • Sacramento, CA

A: In your situation with a car that's costly to repair and still under a significant loan, there are a few options to consider. Firstly, check if your car is still under any kind of warranty. If it is, some or all of the repair costs might be covered, reducing your financial burden.

If the warranty isn't an option, you could consider selling the car. Even though you owe more than it's worth, this could reduce the overall debt you're responsible for. Another option might be to negotiate with your lender for a loan modification, which could lower your monthly payments or provide other relief.

If these options aren't feasible, you might want to consult with a financial advisor or attorney. They can help you explore options like a voluntary surrender of the vehicle or even bankruptcy, depending on your overall financial situation. Remember, each option has its own consequences and should be weighed carefully.

In the meantime, try to avoid letting the loan or insurance lapse, as this could lead to further financial and legal complications. The key is to take action sooner rather than later to find the best possible solution for your specific circumstances.

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