For many, owning a car is the only way to get to work, school and to see family. When unforeseen changes come about, whether from sudden unemployment or unexpected medical bills, paying for that vehicle can become difficult. Late or missed payments may result in financial challenges that may feel like they are impossible to escape. Additionally, an individual may face wage garnishment or repossession. Unfortunately, this is the case more and more frequently across America.
According to a recent study conducted by Experian Automotive, loan delinquency and repossession rates surged in the first quarter of this year. Auto loans delinquent by 60 days rose 12 percent and loans delinquent 30 days increased one percent. Repossessions are up by half a percent. These increased numbers mean the sluggish economy is taking its toll, leaving individuals struggling to stay afloat.
Luckily, financial relief can be obtained. One way is for an individual to get help is to file for bankruptcy. Filing for bankruptcy may lead to the loss of the vehicle, but in return the debt may be eliminated. In some instances, the process of bankruptcy will allow the individual to keep his vehicle while discharging other debt.
Filing for bankruptcy may also temporarily prevent repossession of a vehicle. Though only temporary, this stay will afford the struggling individual time to develop a plan for implementation once the vehicle is taken. Then, the repossession will not completely blindside the individual and leave him in a position where he has no options.
Stressing about credit card, medical, home, or auto debt can be very difficult to overcome. However, these individuals can get a fresh start when matters are handled properly. An experienced attorney can walk a client through the process and give advice about the best way to proceed so that relief can be obtained.
Source: Examiner.com, "Car loan delinquencies and repossessions are surging," Harold Mandel, May 20, 2013