Vehicle repossessions are on the rise as more and more individuals are struggling to maintain their monthly bills. A repossession occurs when the auto lender takes the vehicle back after the borrower falls behind on their monthly payments. Repossessions usually take place after a borrower is 2 to 3 months behind on their payments. However, some lenders will repossess your vehicle after just one missed payment.
Cost of Living Has Gone Up
Americans have less and less money available each month. Inflation and raised interest rates have led to more than just a higher bill at the grocery store. Variable rate mortgages, credit cards, and personal loans have all seen a sharp increase in interest – resulting in higher monthly payments. Individuals are having a hard time staying above water as they try to balance their basic household expenses. As a result, more and more people are falling behind on monthly payments on their homes and vehicles.
Used Car Market
The recent flood of repossessions will also result in more used cars on the market. This is great for individuals who are looking to buy a used car. However, it is bad news for people that will be looking to sell their cars. More used cars on the market means that there is a bigger supply and thus used car values will go down. Individuals that have equity in their vehicle now may no longer have it by the time they are ready to sell.
We Can Help
Reach out to an attorney closest to you. A Chapter 13 bankruptcy may help you keep your vehicle while also reducing the interest rate and monthly payment. Additionally, a Chapter 7 bankruptcy may help you walk away from the car without fear of being sued and garnished.
Give us a call today and speak with a licensed attorney to better understand your options!