@Anonymous wrote:
Hello,
Due to a cut in hours over the last 6-8 months, I've had a hard time with bills. Specifically car payments. Due to such, my car was repossessed in December. I don't have much dept, but the repo will cause much more. I am not sure about bankruptcy, but I am curious as to whether filing a chapter 13 will be beneficial.
If your car was repoed the damage has been done. If you don't reclaim the car by paying back payments etc that your lender requires then it will go to auction and sold. Generally they do try to get as much out of it as possible, however 99% of the time it won't cover the entire loan balance. You will then be liable to repay that difference. Most will work out repayments with you, others want payments at the original monthly terms you had for the car.
Filing BK won't help you any with your current situation, just make things worse since you've already got a repo on your record. Unless you've reclaimed the car, chapter 13 is useless, it won't give you the car back. You might as well file chapter 7. If you don't have much in debt, it's most likely something you can get out of on your own. Possibly start looking for a better job or a 2nd job and get your debts paid off, and buy a cheap car till you can get your credit paid off and cleaned up.
