My husband has a friend (23) who just married a 19 year old. But she has a car that she gave to her mother and her mother failed to make the payments and 4-5 months later the car was repossessed. The 19 year old girl is filing for bankruptcy!!! WTH??? So young! They don't realize the ramifications of this. They think that the debt will go away and that it will be okay again. She doesn't have any other credit to her name. Neither does he. He only has a car. (a 2000 Neon) What would you do?? What advice would you give?
That is a shame. Most younger people do not realize the consequences. My DH filed for BK when he was 23 TOO! His ex-spouse charged everything and then some. Unfortunately, we wanted to buy a house about 6 years ago, but we couldn't qualify based on credit. I think that is when most people get a clue as to what bad credit can to their life.....you may never own a home if you can't keep your credit in order. By the way, had we bought that house 6 years ago, we could have sold it for double the amount we paid! Where I live, the real estate market has gone through the roof.
The more I think about it, the more it makes me mad. I just can't stand to see someone who is so young, just throw it away for 7 years over a car. There has got to be some other way out of this.
It make sme sad as well. So little debt and so young. I think she would do better trying to build some credit along the way and dispute this item after activity settles down.
6 grand. I'm not familiar on what happens after a car is repossessed because I've never had the experience. But, I think I do understand that the car is taken, but the person still owes the bank or CA money and that additional interest can be tacked on. Am I right?
Not sure about tacking on interest after the car has been repo'ed. That information would probably be in the terms she signed when she got the car. The reason I asked about how much she owed is because I've heard talk on the board about something like some judges won't allow you to file if it's not a exorbiant amount you owe out.
Good point Mindcrime. What will she essentially be disputing off her report if she just lets the repo go on there and doesn't go the bankruptcy route? Will she be fighting a CA or a judgement or both?
That is very stupid. BK from a secured debt? Give up the car, and negotiate a settlement on negative equity. How bad can it be?
I imagine at 19 it can seem downright overwhelming. I remember at 19 $100 would have turned my financial picture right side up (those were the days). You can imagine she is probably making little money (too soon to have finished college). I feel for their situation, but truly hope they can avoid BK. Car should go to auction and she may be able to negotiate to settle the difference. Oh to be 19 again!
If they are both working it is unlikely that they will be allowed to file. You have to be able to show to the trustee/judge that the debt is crushing. If that is the only thing they owe on it probably won't be allowed.
Well, that's good to know. I'll pass the info along to my hubby and let him tell his friend. Thanks for all the responses!!!
I know some one ( my ex-sisiter in-law) who filed banckruptcy twice already and she is only 24!!!!!!!!!!!!!!!!!!!!! but she is sneaky and has bad a character ( besides filing twice). So sad it should not be so easy to file
