One area in which people get into financial difficulty is where they get behind on a car loan payment, and the vehicle is repossessed and sold. However, the sale price is not enough to pay off the loan, and the borrower is faced with a deficiency.
This can also happen where the car is totaled in an accident. The auto insurance carrier steps in and pays the claim on the car, but the amount is not enough to pay off the loan.
The good news is that this debt can be discharged in a bankruptcy, whether a chapter 7 or a chapter 13. There is nothing special about the debt; it is really no different than a balance owed to a credit card bank or a hospital.
If a car repo (or insurance) deficiency is the final straw for your financial camel, you live in South Jersey, and are considering filing bankruptcy, call my office at 856-432-4113 or contact me through this site for a free consultation to discuss your case.
If you are looking for more information about bankruptcy, then download my free book,Top Questions People Ask About Filing Bankruptcy in New Jersey.