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Q:
Is there anything I can do to avoid going bankrupt?

Is there anything I can do to avoid going bankrupt? I have heard people say "just call the bank and tell them to come and get whatever the item is, that you can not make the payments any more." -Judy

Judy,

If you let anything (i.e.: car, boat, house, etc.) go back as a repossession, the lender will sell the item to the highest bidder and apply the proceeds of the sale to the balance owed on the item. If the sale price is not sufficient to pay the balance due, there will be a "deficiency balance" remaining. You will be legally obligated to pay this deficiency balance. If you do not pay this balance, the creditor can possibly sue you in an effort to try and collect from you.

The lender can also report this repossession to the credit reporting agencies. This derogatory notation will remain on your credit bureau file for 7 years.

I hope this helps,

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