What is a deficiency balance and what can you do about it?
By: Darrell Castle
Many people don’t realize they can still owe money on a car after it’s repossessed.
If your repossessed car sells for LESS than the outstanding balance, then there is a deficiency balance which you’ll still have to pay.
If you can’t afford the payments on your car, leading to its repossession, then chances are you can’t afford to pay the deficiency balance either. This is where a bankruptcy attorney comes in handy.
By filing for Chapter 7 bankruptcy, which is a complete discharge of your debt, you wipe out your liability for that deficiency balance, meaning you don’t have to pay it.
A Chapter 7 bankruptcy isn’t what most people tend to think. You can rebuild your credit score better than it was before.
Actually, if your car is repossessed because of missed payments, then your credit is probably already bad. A bankruptcy will allow you to clean your financial slate and start fresh. This is a great opportunity to get your finances in order from scratch.
At Darrell Castle & Associates, we not only want to help you get out of debt through bankruptcy, but we also want to help you get back on your feet financially. We want to see you succeed.
To help you with this, we offer an online credit restoration program called 7 Steps to a 720. This program, which is a $1,000 value, is offered free to our clients. It will teach you the tips and tricks the banks don’t want you to know in regards to re-establishing your credit score and rebuilding it to an A rating, which is very important for buying/renting purposes.
If you’re considering filing for bankruptcy, consider a law firm you can trust – one who’ll walk and talk you through every step of the process. My law firm has received multiple Client Discintion Awards from Martindale-Hubbel for client satisfaction because we go the extra mile.
Schedule a FREE financial consultation with an experienced attorney today by calling (901) 327-2100 or by filling out one of the contact forms on this page.