For many people, their car is their primary mode of transportation and the main way they get to their work. Thus, it can be quite disheartening and problematic when a person is no longer able to use their car. Many things can lead to a person no longer being able to use their car, such as: their car requiring overly expensive repairs to return to operation, their car suffering critical damage in a car accident or their car developing unfixable mechanical problems.
One’s car going out of operation can be tough on a person in any sort of circumstance. However, there are certain complications that can potentially make such a situation even more difficult for an individual. One such complication is if they still hold loan debt on the now-nonoperational vehicle. This can happen when a vehicle goes out of operation before the loan term of the vehicle is up. Given that longer-term auto loans have been growing in prevalence recently, one wonders if still owing money on a vehicle that is no longer operational will be a situation that more and more people will find themselves in in the future.
Facing this sort of auto loan situation can put a person in the very financially difficult situation of facing continued auto loan payments in relation to their nonoperational vehicle on top of the financial stresses that come from losing use of their vehicle.
There are many different ways a person could try to deal with this sort of situation. In some circumstances, seeking bankruptcy protection can be of help to individuals who are facing a high amount of auto debt in relation to a vehicle that no longer works. Sometimes, through a personal bankruptcy, a person is able to get auto debt they hold discharged or reduced.
Now as is the case with any sort of debt problem, whether bankruptcy would be the right way of addressing a given auto debt problem a person has is very much dependent on the debtor’s particular circumstances and overall goals. Bankruptcy attorneys can help individuals who still owe money on a vehicle they are unable to use or are facing other auto debt problems look into whether seeking bankruptcy protection would be an appropriate and helpful way for them to address their debt situation.
Source: Money, “Help! My Car Loan Outlasted My Car,” Gerri Detweiler, May 20, 2015