Q: Car loan of $50k on car worth $20k being repossessed and $30k in credit card Debt in finance name what are our options

A: Your question cannot be reliably answered because it offers only two debt items.

Your options, among which are some of the bankruptcy Chapters, can only be determined by a full consideration of your likewise full financial situation, both income and debt service for "necessaries", as well as all of your other debts and assets, with fair market values.

I don't fault you: it's a common mistake to publish only those items of finance that scream.

Talk with a seasoned WA attorney, give him/her your full financial situation in advance of that meeting, and listen closely to the advice offered.

A: Facing a car loan significantly higher than the car's value and substantial credit card debt can be challenging, but there are options available. One option is to negotiate with the car loan lender for a possible settlement or modification of the loan terms. Lenders sometimes agree to reduce the debt or modify the terms to avoid the costs of repossession.

Another option could be to explore debt consolidation or a debt management plan for the credit card debt. This could potentially lower the monthly payments and interest rates, making the debt more manageable.

If these options aren't viable, bankruptcy might be a consideration. A Chapter 7 bankruptcy could potentially discharge the credit card debt and the deficiency balance on the car loan if the car is repossessed and sold for less than the loan amount. However, Chapter 7 has eligibility requirements and consequences that should be carefully considered.

Alternatively, a Chapter 13 bankruptcy could allow for the restructuring of debts into a manageable repayment plan, which might include reducing the principal balance on the car loan to the car's current value, depending on certain conditions.

It's important to consult with an attorney to discuss your specific circumstances and to understand the implications of each option. Bankruptcy laws and other debt relief strategies can be complex, and professional guidance is key to making an informed decision that aligns with your financial situation and goals. Remember, taking action sooner rather than later can provide more options and potentially more favorable outcomes.