Auto loans are easy to get and auto finance rates are very low. It is difficult to resist the temptation of buying the best car you can afford, but missed car payments can lead to negative marks on your credit and can also lead to repossession. Late payments of auto loans on your credit record can impact your credit score for a long period of time especially if you have missed many months and are continuing to miss more. The best thing to do to preserve your credit is to stop the late payments from recording on to your record and stop a repossession from occurring.
In a repossession situation, your car may get picked up by the dealer and sold at auction, but if there is still a remaining balance owed, your credit will continue to add more late payments and the account could end up in collections even after you have lost your car. A bankruptcy can eliminate the auto debt left over from a repossession. A bankruptcy can also stop the repossession from happening at all if you file early enough to fix the situation. Both a Chapter 7 and Chapter 13 can help with your auto debt by either eliminating the debt completely or slowly paying back the past due debt and keeping your car. Each situation can still be very different. We recommend talking with our attorney in detail about your situation to find the best solution for you, but know that there is a solution to your problem available. The key to preserving your credit or stopping a repossession from happening is to get started early. Get educated about what you can do in your situation.
If you are in danger of losing your dream car due to tight finances, we can help you learn what steps to take for the future so that you can either keep your dream car or count on a better situation for yourself in the future so you can get that car back in your garage someday.