If you can’t afford a vehicle, how do you decide whether to just let it get repossessed, or whether to filebankruptcy?

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If you can’t afford a vehicle, how do you decide whether to just let it get repossessed, or whether to filebankruptcy?

My husband has a truck that he hasn’t paid since early 2008,. We still have it since it hasn’t been repossessedye. But since he’s trying to clear his credit we are trying to seek the best option. Should he claim bankruptcy on it or should he give the truck back? The issue is once the truck is auctioned off we don’t have any funds at all to pay the difference and we are sure it would be at least 20k or more we would owe on it.

Asked on April 21, 2011 under Bankruptcy Law, California

Answers:

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 10 years ago | Contributor

I think you've answered your own question.  Letting the truck be repossessed is not going to clear your credit.  It will merely show a repossession and then, as you point out, there will likely be a deficiency balance owed after it is sold.   Filing bankruptcy is a good way to resolve the amount you owe on the balance as well as giving you a definite starting over point on your credit to start rebuilding.  

Depending on what other debts you have, bankruptcy may or may not be a good choice overall.

I suggest you consult with a bankruptcy attorney to get more details and evaluate your options more fully.  Please check out my webpage below if you are interested.

 

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 10 years ago | Contributor

I think you've answered your own question.  Letting the truck be repossessed is not going to clear your credit.  It will merely show a repossession and then, as you point out, there will likely be a deficiency balance owed after it is sold.   Filing bankruptcy is a good way to resolve the amount you owe on the balance as well as giving you a definite starting over point on your credit to start rebuilding.  

Depending on what other debts you have, bankruptcy may or may not be a good choice overall.

I suggest you consult with a bankruptcy attorney to get more details and evaluate your options more fully.  Please check out my webpage below if you are interested.

 

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/


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