Castle Law Office Blog | Missouri & Illinois Bankruptcy Legal Blog

Repo Man Becoming The Next Maytag Repairman? Why Filing Bankruptcy Insures You're Safe

It appears that with the economy seemingly coming to a grinding halt, more and more people are losing their homes to foreclosure and cars to repossession.  That is what has been all over the news lately.  But what happens to all of this property?  Well, it normally would be sold at auction to the highest bidder and, hopefully, the bank or lender gets enough money out of the sale to pay off the loan.  This is usually not the case, however, and when a piece of property like a house or car is sold for less than what is owed, a deficiency balance will be due for the difference and the lender will go after the original borrower - YOU.

But now, reports are indicating that automobile financing banks and lenders have way too much property that has been repossessed or foreclosed on and trying to sell it in an auction is becoming increasingly difficult without taking huge losses.  A report titled "Cant' Pay Car Loan? Bank May Not Even Want It Back" on CNBC discusses that the repossession business is slowing way down as lenders are trying to work out more loans instead of taking the delinquent cars back.

Castle Law Group and St. Louis, Missouri and Illinois bankruptcy attorney James Brown frequently help people avoid foreclosure, repossession and wage garnishment by filing a chapter 7 bankruptcy or chapter 13 bankruptcy case.  If you would like to find out more about what options you have to get out of credit card debt, you can request a free copy of my book "7 Critical Mistakes to Avoid the Dismissal of your Bankruptcy Case" or give us a call toll free at 1-866-570-8484.