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Which is better repossession or bankruptcy?


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Wiki User
2016-07-03 12:18:52
2016-07-03 12:18:52

Better is not the best word, but a chapter 7 could wipe out the car debt and your other debt. If you just to the repo - they can still come after you for the 4500 dollar difference if they sell it for only 4k (most likely it will be sold for 2k or so) which would make the debt higher. Both will hurt your credit so if you are going to take the hit, I recommend you get rid of all of the debt and have some money to pay for things you need. Of course going bankrupt takes money too!

Bankruptcy means that you will lose your home, as does repossession. The only way to stop either is to start repaying your debts and there are many financial solutions companies out there which could help.

If you have mortgage arrears then speak to your mortgage lender ASAP, you may be able to come up with a repayment plan to repay your mortgage arrears along with your future mortgage payments. It is always important that you take action sooner rather than later so that your bankruptcy or repossession can be stopped.

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file bankruptcy that bay you wont loose your stuff

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Neither is good. However, a repossession does less damage and is removed from your credit report within less time than a bankruptcy.

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The fact that you have a repossession on your credit report is not a determining factor of whether your can file for bankruptcy. Generally in bankruptcy you can remove the debts from the repossession of your vehicle.

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In GA Can you get your car back after a repossession if you file chapter 13 bankruptcy

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