Friday, April 24, 2009

Looming Auto Bankruptcy: What now?

It now looks like we may know by next Thursday whether Chrysler will seek bankruptcy protection - check out the following article: What can consumers, lemon law attorneys and others do to protect themselves. Some of the following options come to mind:

1. If your vehicle is still covered under the manufacturer's warranty and you have ongoing defects - get the car in for service asap - it may be the only "benefit" you see.

2. For cases that are in the process of settling - needless to say get them wrapped up quickly. In fact, it may already be too late for Chysler.

3. Whether it is Chrysler or GM it would seem prudent to insist in a buy-back case, that any loan payoff checks come directly to the attorney's office or given to the client at the time of turning in the car. This was they can be immediately deposited and then sent to the finance company to payoff the loan once the check clears. I am going to be cautious about having a consumer turn in the car and then rely on the manufacturer to send the check to the finance company afterword. What a disaster it would be if the consumer turned in the car and then say GM filed for bankruptcy BEFORE the check made it to the finance company?!!!

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