What are the consequences of the car being repossessed? 7 Answers as of July 08, 2015

I recently bought a car and I was notified I was being laid off. Will I still owe the car? I'm 20 years old and I haven't made my first payment. I need help. I really do. I don't have any credit to begin with so it doesn't matter if my credit gets shot. What are my next step? I already talked to the finance company and they said I still owe the car even if it gets repossessed. What if I file for bankruptcy? What would happen?

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Eranthe Law Firm
Eranthe Law Firm | Cate Eranthe
When a car is repossessed it is sold at auction. You will owe the difference between what is owed on the loan, the costs of sale and what is collected. There is likely to be a sum that is not recovered and which you would owe. If you file bankruptcy that would likely be discharged. In order to know what is likely to occur in a bankruptcy case a lot more information would be required. Please go see a knowledgeable bankruptcy attorney in your area. From the little information in your post there is no way to know if a bankruptcy would be appropriate.
Answer Applies to: California
Replied: 7/8/2015
Stephens Gourley & Bywater | David A. Stephens
The bank will sell the car. If it sells for less than is owed on it, which is usually the case, the bank can sue you for the difference.
Answer Applies to: Nevada
Replied: 7/7/2015
GARCIA & GONZALES, P.C. | Richard N. Gonzales
Bankruptcy will clear up the debt.
Answer Applies to: Colorado
Replied: 7/6/2015
A Fresh Start
A Fresh Start | Dorothy G Bunce
When a car is repossessed, it is usually sold at a dealers auto auction for a fraction of what it sells for at retail level. You are legally obligated for the difference between the balance of the contract and the auction proceeds. If you do not pay the lender this amount, in most instances, the lender will sue you to collect. This is the kind of debt that can be discharged in a bankruptcy, but bankruptcy should not be something you jump into for just one debt or without carefully considering all of your options.
Answer Applies to: Nevada
Replied: 7/6/2015
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
The car would be repossessed then auctioned. You will owe the difference of your loan amount minus the sale price. A chapter 7 bankruptcy will get rid of that debt.
Answer Applies to: New York
Replied: 7/6/2015
    Law Offices of Joseph A. Mannis
    Law Offices of Joseph A. Mannis | Todd Mannis
    If you file for bankruptcy, you will discharge the debt and owe them nothing.
    Answer Applies to: California
    Replied: 7/3/2015
    Thomas Vogele & Associates, APC | Thomas A. Vogele
    A 20 year old with no credit history considering whether to file bankruptcy to avoid or somehow stop a repossession of a car? Let's get real, here. Filing bankruptcy is a serious, life altering move that will stay with you for ten years or more. It will remain on your credit history until you're thirty years old, making buying another car or a house much more expensive and difficult. It can affect your ability to buy insurance or get a good job (employers tend to shy away from people with bankruptcies because they're viewed as irresponsible). What you need to do is stop looking for an easy way out and do the hard stuff required to become a responsible adult. Go get another job, make arrangements with the finance company to give you a brief payment respite, then make all your payments on time and in full. Better yet, sell the car, even if it's at a loss and take the bus until you have enough money in the bank to buy a used car without getting a loan. The time to establish your credit is now, when you're young. Sorry if this sounds like a scold. It is intended to make you wake up and take a different path before you get trapped into a life of debt and excuses that will inevitably lead to financial hardship.
    Answer Applies to: California
    Replied: 7/3/2015
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