Have you ever had a bad car loan? Maybe the car itself was the problem or perhaps the terms and interest rate of the car loan created a long term debt that simply would not fit in your budget. You are not alone. Many people with bad credit have trouble purchasing dependable transportation. If a person in this situation fails to make the payments, even on a car that broke down long before it was paid off, then the creditor may go to court and receive a judgment lien for the balance of the loan, legal costs for obtaining the judgment plus interest. The judgment lien can be used to garnish wages or be placed against any real estate owned. The fallout from a bad car or bad car loan can last for decades.
Here is a June 18, 2017 news story from the New York Times about that situation:
“More than a decade after Yvette Harris’s 1997 Mitsubishi was repossessed, she is still paying off her car loan.
She has no choice. Her auto lender took her to court and won the right to seize a portion of her income to cover her debt. The lender has so far been able to garnish $4,133 from her paychecks — a drain that at one point forced Ms. Harris, a single mother who lives in the Bronx, to go on public assistance to support her two sons.
“How am I still paying for a car I don’t have?” she asked.
It is not prominently covered, or explained, that many of the individuals who are carrying debt from repossessed vehicles could find relief quickly through a Chapter 7 bankruptcy filing. Are you under financial pressure from old debt? Contact us and let’s see if we can help you make old debt disappear.