In 2008, .86 percent of car loans were at least 60 days late, according to a Bankruptcy Consumer News report. This percentage has increased by 25 percent since 2007 and many analysts predict that the car loan delinquencies and defaults will only get worse. With a continued rise in job losses, many debtors are being forced to choose between paying their car loan or paying their mortgage, of course most are choosing to use all of their resources to avoid foreclosure . This is causing the car loan delinquency rate to skyrocket fast as the economy continues to get worse.
But it’s not just job losses alone that are causing this spike in car loan delinquencies, many debtors try to sale their cars once they run into financial trouble but now it’s not so easy. With the current lack of credit availability, many would be buyers are unable to find the financing for used vehicles (as well as new). This inability to sell these cars and of course unload the attached car loan is leaving many struggling debtors with few options so they choose to stop paying the car loan.
If you’re a debtor with a car loan that has become unaffordable, there are bankruptcy options available that may help you discharge the debt. Speak with a Dallas bankruptcy attorney to discover your bankruptcy options.