Hi Everyone! New to this board and have a very interesting problem! I have been working on credit repair for several months and only have a few items left on each report plus student loans, ugh. My husband left and with him took my only income. Needless to say my car payment got severely behind. As it was, I was paying 23% interest and the balance owing is just over $10,000 for a car worth only about $5000. I tried to trade it in thinking I could get my interest and payment lowered and was told that my credit report shows the car as voluntarily repossessed. I still have possession of the car! The dealer told me to file Bankruptcy if I wanted a car anytime soon. I would also like to purchase a home fairly soon. I guess my question is, what should I do with the car? I am assuming that they are still looking for it. File bankruptcy or not? I hope someone out there has some helpful hints! Thanks Bunches! Lauri
I am sorry to here about your ex-husband, I am fairly new to credit repair myself,. You could start with going to myfico and and getting all your reports and scores. From there you can come back and ask here again. You should check out other credit repair websites as well.
It's probably just being reported incorrectly by the lender. Did you ever get a notice from the lender that they were planning on repo'ing the car? In any case, it's not uncommon for a lender to never pick up a car that's behind on payments. The lenders are flooded with repo's right now, and in some cases it's not worth their trouble to come and get it. Remember, the car you think is worth $5000 is probably only worth $1500 at auction. It's just not worth their time to pick it up. I've known of people who have filed bankruptcy and continued to drive cars for years without making the payments. The lenders never come and get them. Just make sure you keep insurance on it, and you can drive it until they come for it...if they ever do. Of course, you still technically owe the $10,000.
Re: Re: Repo? I STILL HAVE THE CAR!! ~They have tried to find the car but it has been in storage as it has some mechanical problems and I have moved recently. I did cancel the insurance but I think I can still reinstate it. What would happen if I filed BK? I dont know the laws as I have never considered it before. My biggest question is about my credit. Am I better off filing BK or just giving the car back? I understand that people are raising their credit scores after BK and that a new car and home purchase are possible shortly after. Am I wrong? Thanks for all of your help!
Re: Re: Re: Repo? I STILL HAVE THE CAR!! Oh, I see. Well, you can probably expect them to pick it up one day, considering that they've tried in the past. I sure wouldn't spend much fixing it right now. If you file BK, you still have to give the car back if they ask for it...unless you get caught up on the payments and continue to make them. You definately shouldn't file bankruptcy if you don't have a lot of other debts. Don't file just because of the car. If you file, you won't be able to buy a home for at least two years... unless you're prepared to put a huge down payment on one.
Re: Re: Re: Repo? I STILL HAVE THE CAR!! If you file BK, then you cannot be sued for the defciency on the car loan. You can't be sued for any of the cc debts, any judgments etc.already filed would be discharged. Another advantage in your case, any debts your ex was a signer on would fall on HIM completely. It is lot easier to get a car loan after BK, then with a repo deficiency judgment on you.
Re: Re: Re: Repo? I STILL HAVE THE CAR!! Are you saying that because my credit reports already say the car is repo'd, if I file BK now, I could keep the car and not owe the balance? How difficult will it be then to rebuild my credit? I have defaulted student loans that will still remain so I am going to be in a worse situation with a BK and student loans when it comes to getting credit again? I appreciate all of your info! Thanks!
Re: Re: Re: Re: Repo? I STILL HAVE THE CAR!! You legally cannot keep the car if you do not make the payments...even if you file bankruptcy. If you file bankruptcy, you either have to pay all the payments, or turn the car in to the lender. Some lenders do not want to pick up the car, though.
Re: Re: Re: Re: Re: Repo? I STILL HAVE THE CAR!! Typically, if the debtor is within a two or three payments in arrears, the creditor-lender will agree to a Reaffirmation Agreement. But beware: doing this does not allow the debtor to include the car payments in bankruptcy. Further, if she gets behind again, and they repo right away, it cannot be included in the bankrupcty prior to discharge.
