It is a well known fact that our economy has really plummeted in the last few years, and this have lead many big companies to file for bankruptcy car value. It is important to know that, there are two types of bankruptcy plans that has to be involved. Chapter 7 which stipulate that the company can keep operating their business while making efforts to clear off their debts at a lesser amount agreed upon with their creditors. While Chapter 11 means that they completely shut down all operations of the business and none of the creditors will get paid for the debts.
Many different types of companies are being forced into bankruptcy during economic recession. The large auto companies fall into that group also. If you have purchased a new vehicle over the past few years this probably hasn’t affected you yet. This is because the auto companies have been allowed to file what is called a Chapter 7 bankruptcy. This means that the company can actually remain operating as usual while at the same time trying to reorganize their business in order to pay off its debt. This does not give them a guarantee that they won’t have to file a Chapter 11 bankruptcy in the future.
The is not an official stand as regards your car’s warranty, but chances are that the government will come in handy and provide the needed assistance for the bankrupt car company to honor the warranty either by loaning them money or by taking responsibility for the warranties themselves.
Getting necessary replacement parts for your vehicle in the future might also pose a problem if the dealership you bought your vehicle from goes bankrupt. This is because if the supplier can’t make it through then the smaller companies selling auto parts might go under too, thus, making you wait for a long time to get a new part for your car. The auto insurance company may likely assist you in this area by making sure that the best quality parts are made accessible to you and they will also guarantee them. At the salvage yard you can also find a replacement for your parts. Getting your parts from this place will save you a lot of money.