• Spectacular!

    I liked your fast, friendly service. You were all knowledgeable in the area of bankruptcy. Your treatment of me as a client was spectacular! You were great at promptly responding to my questions and concerns. I loved that you provided courteous and quick responses to all my questions.
  • Highly Recommended!

    I have worked with Seth and he is the utmost professional in how he works with his clients. If you need an attorney you can trust I would highly recommend the Law Office of Seth Hanson.
  • Very Professional.

    Everyone was very professional and efficient. Seth, and everyone that I had contact with were very knowledgeable. I was very pleased with how we were treated by his staff. My questions were always answered promptly. I was very pleased with the service I received and would not hesitate to refer someone to your firm.
  • Non-judgmental.

    You were very open and answered all of my questions. You never made me feel like I was asking a dumb question. I was comfortable with your knowledge of the law. It was hard for me to make this decision to move forward in my life. Everyone was friendly to me and respectful. Non-judgmental. Every question I asked was answered promptly and appropriately. I would recommend you.
  • More Than Expected!

    I found the firm's representation to be more than what I expected. I was always kept in the loop, all my questions were answered (whether or not I asked more than once the same question), and I felt completely supported by the firm staff when going through this (at times) scary ordeal. Thank you again.
  • Very Impressed!

    I liked that you had very friendly, caring staff. You were all very knowledgeable. Your treatment towards me was excellent and you quickly responded to all my concerns. If a friend asked of your overall impression, I would say that we were very impressed and we would recommend you to them.

Auto Loan Delinquency Rates Skyrocketing

The car loan industry is massive. There were roughly $1.1 trillion in outstanding loans at the end of 2017. That’s nearly as much as the GDP of Mexico. It’s estimated that 20% of the car loan industry is comprised of subprime loans – loans to borrowers with a FICO score below 620.

Creditors are able to charge higher interest rates to people with poor credit. Subprime lenders usually borrow money from major banks, and then use this money to finance subprime auto loans with much higher interest rates than those charged by the bank. Thus, the difference between the bank’s interest rate and that of the subprime auto loans is where these lenders make their money.

The ever-present possibility of massive defaults is a huge problem for subprime lenders. Subprime lenders are able to charge higher interest rates precisely because their customers are more likely to default than car buyers with higher credit scores. This possibility for large scale default has recently been realized. Default rates among subprime auto loans has skyrocketed to 5.8%. That’s the highest default rate this century. Several subprime lenders have already filed bankruptcy owing to these defaults, and several more are likely to follow suit.

While this isn’t good news, there’s no need to panic. The car market doesn’t have the same impact on the economy as does the housing market. A dicey car market isn’t going to cause another Great Recession.

Bankruptcy might be a good option for you if your car payment is becoming too much to handle. I would be happy to speak with you about the possibility of bankruptcy in Stockton. I’ve helped hundreds of clients in the Stockton area and would be happy to assist you too.

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