By: Darrell Castle
A Chapter 7 bankruptcy can help you get rid of your deficiency balance.
A deficiency balance refers to the unpaid balance left on your car after its been repossessed and resold.
When you fall behind on your car payment, the bank can repossess your car. People often want to keep their car and can stop the repossession by filing for bankruptcy.
However, it’s common to go ahead and let the repossession happen because you don’t want the car anymore and can’t afford it.
How a Chapter 7 bankruptcy can help you
When your car is repossessed, it’s often turned right back around the sold in an auction of some kind. Maybe it’s sold back for the full amount owed so the bank gets its money back. But if it’s not sold for the full amount owed, then the lender can come after you to collect the rest — the deficiency balance.
If you couldn’t afford to keep the car, odds are you can’t afford the deficiency balance.
Fortunately, you can discharge — wipe out your liability — for that balance by filing for Chapter 7 bankruptcy.
This is a relatively easy and short process that a bankruptcy attorney can help you with.
And really, a car repossession signals that there’s a fundamental issue in your finances. That’s something a bankruptcy attorney will be able to help you with.
Our Memphis bankruptcy attorneys can help
If you’re struggling financially and want to talk to someone experienced about your options, then our FREE consultation is perfect for you.
This is time reserved JUST FOR YOU. You’ll sit down with the bankruptcy attorney, go over your finances and your situation. And then you’ll discuss your best options moving forward.
Maybe your best option is bankruptcy. Maybe it’s not. But wouldn’t you like to know? It’s free advice!
For decades, Darrell Castle & Associates has helped people in the Mid-South get out of debt. We’re detailed, responsive and we truly care. You’re not just a case number here, but you’re a real person with a real problem. We can help you with that problem.
That’s why our clients like us. That’s why we’ve received multiple Client Distinction Awards from Martindale-Hubbell for client satisfaction. You’re in good hands here.
Want a FREE bankruptcy consultation?
Call (901) 327-2100 today to schedule your appointment. Or you can fill out the form to the right of this page to have someone from our office contact YOU.
How to stop a car repossession
If your car’s about to be repossessed and you want to stop it, then I can help you with that too. In fact, I’ve created this FREE report detailing how to stop a car repossession, foreclosure or wage garnishment that you can have in the palm of your hands free of charge. Download “Don’t Let Them Take Your Stuff” today from my website.