According to the U.S. Department of Transportation Aug. 2021, “on average, there are 1.88 vehicles per U.S. household.” Most of us depend on wheels for commuting, transporting precious cargo, and for delivering basic living supplies to and from our homes. Unless you can get around on foot or bicycle, owning a vehicle has become an American necessity. When you get really behind on payments, Debt Advisors can help you decide if bankruptcy is right for your situation.
According to AAA, “the average price of a new vehicle in 2021 is $32,903, which is $1,502 or 4.78% higher than last year.” Trucks, SUV’s, and electric vehicles continue to be favorites. The average prices for automakers’is increasing due to current demands and shortages. Is your nice ride eating a big chunk of your paycheck?
Vehicles And Gasoline
In 2021, vehicles and gasoline have become more costly than ever. Can people really afford the long-term and full cost of a vehicle? According to Auto Trader 2020, “the most common loan terms are 24, 36, 48, 60, 72, and 84 months.” Sometimes extended loan times make the purchase appear more affordable. (Ex: Financing for more than five years will typically allow payments under $500.) This may seem affordable, but these long-term payoffs never get the buyer to the point whereby the car is worth more than what is owed.
What happens to my vehicle if I file bankruptcy?
If you find yourself in financial trouble, contact an affordable bankruptcy attorney right away. They can stop repossession of your car through an automatic stay. You don’t have to surrender your vehicle. Your local bankruptcy attorney has the experience negotiating with auto lenders. A good bankruptcy lawyer can also discuss the possibility of reaffirming your current car loan which may reduce car payments and allow you to both afford, and keep your vehicles.
How Do I Get Out Of Auto Debt?
Chapter 7 bankruptcy is often referred to as a short period “liquidation” process allowing a person to discharge debts. (The process typically takes about five months.) Once that period is over, you will come out of Chapter 7 debt-free. Chapter 13 also provides options to reduce your auto loan. Allow Debt Advisors to guide you through the bankruptcy process, and help you avoid common mistakes. Schedule a free initial consultation to find out if you may qualify for Chapter 7 or Chapter 13 bankruptcy.