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cortrightlaw, Attorney
Category: Bankruptcy Law
Satisfied Customers: 513
Experience:  Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.
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Im in California. I need to get out of a car (car loan) that

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I'm in California. I need to get out of a car (car loan) that I contracted last December. The payment was beyond my means then, and it's beyond my means now. I have other consumer debt, but most of it is past the "4-years-from-date-of first-first-missed-payment." I own a home, too, that is a little upside down. I was able to modify it to a reasonable payment.

My question is, if I file a Chapter 7, will that keep the car loan company from being able to file a deficiency judgment after repo-ing the car?? My wages are already much less than they used to be. I can't possibly afford a garnishment and still be able to keep my home. If I file a Chapter 7, will that encourage the car loan company to work with me to reduce the rate/payment before the discharge?

Thank you for your expert advice.

cortrightlaw : Filling chapter 7 will eliminate any deficiency on the car loan and protect you from further collection efforts. And car loans usually will not renegotiate the terms of a loan even if you file bk.

Since this is probably the path I need to take, can you advise if it's ok to wait to file until AFTER they repo the car, and if so, how quickly will I need to file in order to avoid judgment?

cortrightlaw : Yes you can wait till after the repo and it will take them a while to seek a judgment maybe 6 months or more.

Thank you very much. I am very satisfied with my answer. I did not expect to hear from anyone so quickly!

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