Avoid automobile title loans.  If you have debt problems, you should call Muoi Chea Bankruptcy Attorney with offices in Sacramento, Stockton, Fairfield, California.  Auto title loans require you to put up your car as collateral.  If you miss a payment or in default, these lenders can repossess your car.  Be aware that these lenders can use remote engine shutdown devices that allows them to turn off your car if you do not make a payment.  Some of these devices have GPS tracking capabilities. 

The interest rates on these loans are crushing.  As of the date this blog, the state of California does not restrict the interest rates for consumer loans of $2,500 or more.  Approximately 99% of these loans in 2014 are $2,500 or over according to the Department of Business Oversight.

Despite the onerous interest rates, auto title loans have soared to 106,373 from 2011 to 2014 (source: Sacramento Bee).  These loans target people who need quick cash but cannot qualify for conventional loan due to marginal credit scores.

Needless to say you should consider other options before considering an auto title loan.  If you have credit card debts, wage garnishments, imminent foreclosure, medical bills, a better option for you might be a Chapter 7 or Chapter 13 Bankruptcy.  Under Bankruptcy Law, you can wipe out the dischargeable credit card, unsecured personal loans or payday loans, and medical bills if you qualify.  Or with Chapter 13 Bankruptcy, you can save your home from foreclosure and catch up on the arrearages in 60 months without the crushing interest rates charged by the auto title loans.  You can also eliminate dischargeable credit cards, unsecured personal loans or payday loans, and medical bills in a Chapter 13 Bankruptcy just like Chapter 7 if you qualify.  Call Muoi Chea, a knowledgeable and experienced bankruptcy attorney to determine if you qualify for bankruptcy protection.