Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
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In the event that filing bankruptcy makes financial sense for you, you may want to wait for the vehicle to be auctioned off by the lender. After the auction, the lender will notify you of the deficiency and probably sue you for the balance, obtaining what is called a deficiency balance. You may want to wait to file bankruptcy until this judgment is obtained against you. The bankruptcy could then serve to discharge the judgment.
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