Alabama Auto Loan Debt

Regardless of the category, Alabama has a habit of being ranked at the top. The Heart of Dixie currently holds the bragging rights of being home to a #1 nationally ranked football team for the fifth consecutive year in a row, a #2 ranking in drinking water quality, and (oddly enough) a #1 ranking in Pre-K quality. Unfortunately, Alabama also ranks among the top five states with the most auto loan debt.

Vehicle Repossession Risk is High in Alabama

In the past fifteen years, the percentage of Alabamians with delinquent auto debt has more than doubled from 2% in 2003 to 5.75% in 2018. This ranks Alabama as the fourth highest in the nation for auto loan debt (but as the old saying goes, “We’re still better off than Mississippi,” which holds the number one spot in this category).

This means that approximately 1 out of every 17 Alabamians are at risk of having a vehicle repossessed. If you are currently behind on your car payments, filing a Chapter 13 Bankruptcy petition may allow you to stave off the repo man and hold onto your car.

In the case of an auto loan, this is done by consolidating your delinquent car payments into a manageable repayment plan. Once a Chapter 13 Bankruptcy petition is filed, the protection of an automatic stay goes into effect, and the repo man can no longer come after your car.

Let Us Help You Afford Your Car

If you are located in Alabama, Mississippi or Tennessee, and are in need the help of an experienced bankruptcy attorney, please contact one of our locations nearest you for a free, confidential consultation with one of our licensed attorneys.