These subprime loans are just another example of how when you are poor, or have a low income, you may be forced to pay more for less.
Chicago, IL (PRWEB) November 14, 2016
Approximately 25 percent of new car loans are subprime loans, and the subprime car loan market is currently at a ten-year high. Last year, the average default rate for these subprime car loans was 31.45 percent, according to the National Alliance of Buy Here, Pay Here Dealers (NABD).
“These subprime loans are just another example of how when you are poor, or have a low income, you may be forced to pay more for less,” said bankruptcy attorney Thomas Stahulak, founder of Get Filed® / Stahulak & Associates, L.L.C..
In order to help people get out of a subprime car loan trap, Stahulak lists the following two tips:
No 1: Bankruptcy. “Many people don’t realize that bankruptcy can be a way out of bad deals,” said Stahulak. “With a Chapter 13 Bankruptcy, ‘bad car loans,’ meaning in many circumstances loans that substantially exceed the value of the vehicle and loans that contain those extreme interest rates, can be reduced to more manageable rates, much closer to prime-rate interest. But if you really want to return the vehicle then a Chapter 7 filing maybe the best option to protect yourself from a possible auto deficiency judgment.”
No. 2: Don’t just return the car. “If you think merely returning the car might be your way out of the problem, you will be in for a big surprise,” concluded Stahulak. “Even if the car is surrendered back to the dealer, you will remain liable on the note and the lender will have the right to seek an auto deficiency judgment and make you pay the balance of the loan. This situation may result in you having no car and thousands of dollars in debt. Again, filing for bankruptcy relief may be your best solution to remove your liability for repayment of the loan balance on a car you no longer even possess.”
Disclaimer: The advice listed above is in no way a substitute for a legal consultation. Individual facts regarding your finances and ownership of assets are needed in order to make a full determination of an individual's qualifications for filing bankruptcy.
About Get Filed®/Stahulak & Associates, L.L.C.
Get Filed®/Stahulak & Associates combines an experienced, capable team of consumer bankruptcy and family law and litigation attorneys with a staff that is dedicated to ensuring friendly, affordable and effective professional legal services. They focus on bankruptcy and divorce law. For more information, please call (312) 662-1480, or visit http://www.getfiled.com. The law office is located at 53 W. Jackson Blvd., Suite 652, Chicago, IL 60604.
About the NALA™
The NALA offers small and medium-sized businesses effective ways to reach customers through new media. As a single-agency source, the NALA helps businesses flourish in their local community. The NALA’s mission is to promote a business’ relevant and newsworthy events and achievements, both online and through traditional media. For media inquiries, please call 805.650.6121, ext. 361.