According to Quartz.com, more than six million Americans are currently delinquent on their car loans, which is a new record-high since the 2008 recession. Banks are more willing to take on risk since the economy has recovered, but many more Americans are also at risk of losing their vehicles to repossession. Therefore, people who are currently paying loans on their vehicles should be aware of the actions lenders can take against delinquencies.
After you declare bankruptcy in Oregon, you still have to have a place to live, and the costs of moving may be considerable, particularly with the soaring rent prices and lack of rental homes available in many portions of the state. That does not necessarily mean you want to remain tied to your mortgage and your home forever, though. With some time to put money back after your debts are discharged, you may be looking forward to finding a new place that suits your needs better.
If you have fallen behind on bills and plan to file for Chapter 7 bankruptcy, you may still be planning to keep your vehicle under the Oregon motor vehicle exemption. However, a creditor may have other plans. Before the car is repossessed, here are some things to know, according to the Federal Trade Commission.
In Oregon, wage garnishment, or having a piece of one’s paycheck given directly to a creditor, has several iterations. Private creditors (credit card collectors, unpaid landlords, etc.) require a court judgment against the debtor to garnish wages, while other garnishment can happen without going to court. Unpaid child support, income taxes and student loans do not require a judgment to be garnished.
Transportation in Oregon is a necessity, but if you had to buy your car with less than optimal financing, even if you have been making your payments on time, you could find yourself in serious trouble. Sometimes, in order to get a customer into a new car, the dealership’s finance department may offer a loan that extends over several years, and after three or four years of payments, this has the potential to leave you owing much more than the vehicle is worth. At The Law Office of Kim Covington, our team frequently assists people who want to know what their options are for dealing with a negative equity vehicle loan.
Like most Eugene residents, you probably rely on your car to get to work, go grocery shopping and otherwise get around. If you are forced to be without your vehicle, getting anywhere may be unfeasible without causing further hardship. Unfortunately, your vehicle and other assets may be seized to repay creditors during a Chapter 7 bankruptcy. Is there any way you can hold onto your personal means of transportation during what is already a difficult time?
There are numerous opportunities for Eugene residents to get loans, even if they are recovering from a personal bankruptcy. It can be a good thing to have a line of credit, as long as you manage it carefully. Being responsible with debt can help raise your credit score and give you more opportunities for major loans in the future, such as an auto or home loan.
If you are dealing with financial issues in Oregon, you may have considered filing for Chapter 7 bankruptcy. According to the Internal Revenue Service, this is a debt relief option that is meant to aid those who cannot pay down their debts through regular monthly payments. In order to receive this type of protection, however, you may be required to liquidate certain assets.
If you are dealing with serious financial issues, such as unemployment or past due bills, you may be worried that your income could be garnished to pay off your creditors. This is a challenging situation for anyone, but for retired Eugene residents on a fixed income, garnishment can cause a particular hardship. Is it possible that your retirement benefits might be garnished if you are seriously behind on your bills?
The Oregon housing market is currently booming, but some people are still feeling the effects of the recent recession. Many struggling families are currently facing foreclosure. When this occurs, they usually walk away from the property they are no longer able to afford and expect the bank to move forward with selling the home as they usually state they will do. However, this is not always the case, and homeowners are the ones paying the price.