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I'm letting a car go back that i can no longer afford,the finance company is threatening me with wage garnishment, Chapter 7?

Newark, OH |

also have several other nagging bill i.e. medical

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Attorney answers 5


Chapter 7 may work for you but there is no way to really advise you based on the information provided. I strongly urge you to contact one or more local bankruptcy attorneys and have a consultation about your financial situation and your debts to see whether Ch7 is a realistic option for you or whether some other chapter, most likely a Ch13 if a 7 does not work, is most beneficial. Many bankruptcy attorneys offer free initial consultations, take advantage of that.

DISCLAIMER: This message is intended as a general discussion of legal issues and not as a statement of fact, legal advice or a legal opinion. No attorney-client relationship is created by this message. Do not act or rely upon law-related information in this communication without seeking the advice of an attorney licensed to practice in the relevant area. I am a Federally Designated Debt Relief Agency under the United States Bankruptcy Code. I proudly help people in financial need file bankruptcy cases. IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment).


When considering Chapter 7 the threshold question is "do you qualify?" After paying your living expenses, how much is left over to use towards paying debt? Hope this perspective helps!


If you qualify, you may find filing for Chapter 7 beneficial in your situation. While in bankruptcy any collection actions by a debtor (finance company) would be prohibited. In this case, during a bankruptcy the lender would not be able to seek wage garnishment without talking other legal action. I suggest that you contact a Bankruptcy Attorney to help you access if you qualify for Chapter 7.


Be best advice is to consult with a bankruptcy lawyer who offers a free consultation. My office is 1 mile west of 270 on E. Main. St. My name is Scott Needleman, 614-575-1188. Come to my office, and together will review all of your finances and create a plan of action. To answer your question, yes, they can sue you after the repossession of the car, sell it at auction, and want you to pay the difference in value between what they sold it for and what you owe. That is called a deficiency balance. And yes, eventually they can proceed to seizing your bank account and your paycheck.

This answer is general and is not intended to create an attorney client relationhsip and is for informational purposes only.


Cars commonly, ahem drive debtors to bankruptcy. The case-by-case choice in bankruptcy chapters (7 or 13) is a secondary matter of selecting the right weapon from the bankruptcy arsenal; the primary motivation is the proactive pursuit of property protection by way of consulting with counsel who specializes in bankruptcy. Bankruptcy (whether it's chapter 7 or chapter 13 bankruptcy) would stay (stop) wage garnishment and all callous-creditor threats that go with it.

This answer (by San Diego bankruptcy attorney, Asaph Abrams) doesn’t address all facts & implications of the question; it’s general info, not legal advice to be relied upon and exceptions may apply. It creates no attorney-client relationship; it may be pertinent only to CA and/or its Southern District Bankruptcy Court in San Diego. It’s independent of other answers. It may be time sensitive, as in past the “Use by” date: laws and case law change. Hire a bankruptcy lawyer before acting or refraining from bankruptcy or other legal action.

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