Can I get rid of old repossessed car debt by filing bankruptcy?
The short answer is often yes, although every case will be different based on the facts of your case.
A Creditor may have repossessed your vehicle or secured property. You may have been hit with a deficiency when the Creditor sold the vehicle or secured property. Now the old debt hurts your credit, and you wonder if you can get rid of that debt obligation by filing bankruptcy.
Generally, a bankruptcy will discharge any debts that you or your attorney list in the filing, with only a few exceptions like some taxes, some student loans, and child support. So many debtors can get rid of debts for an old repossessed vehicle by filing bankruptcy.
If a judgement has been entered against you already, you may even be able to stop garnishments or avoid that judgment after the debt has been discharged. But be aware there are risks to your credit in filing a bankruptcy; however, many individuals may be better in the long run without the debts.
If you would like to schedule a consultation with a bankruptcy or debt relief lawyer about a repossessed vehicle debt, please click the "free consultation" button.