Ok so I lost my job last year and been struggling since after a year I managed to make payments without a job. I finally got a job this past month but its less than what I made before. I have a car loan that has about $12k left to go on it. The apr is about 17% I pay 360 for 72 months so its a very bad loan and im upside down so selling the vehicle is not an option. my credit has been ruined from the late payments so refinNancing is also not an option. Plus with the crappy job I have theyll see I can afford it. So my question is should I let them repo the car or just file bankruptcy? If I do let them repo it I wont be able to come up with the difference that they couldnt get for it. I kno my credit will be ruined but trust me when I say im done with this whole cresit thind for a looong time! Everything will be paid in cash or ill wait to buy it. I learned my lesson. Ive tried working out somethibg with them before and they would not hear it. So negotiating with yhem is not optional. Im behind two months and it aill be 3 months in the next week so I need answers fast. Please put yourself in.my shoes and let me know what option yoid take. I have no relatives to borrow from also. Thanks guys. I need as many answers as possible. Im 25 btw.
How much is the car worth? If you sell it how much will you get for it? You could try to sell the car for the balance that is due allowing the buyer to take over payments. If they repo it don't sign anything that you will pay the difference because they can sell it at any price they want and stick you with a balance due. SAVE YOUR MONEY AND pay cash for your next car.
Tough situation. I been through the bankruptcy part but to me it's the last resort choice. Filing bankruptcy is not cheap and it will be on your CR for up to 10 years depending on which chapter you file. Factors to consider bankruptcy are total debt and if there is a chance you can settle or pay off your debt(s) without bankruptcy. I'm surprised the lienholder hasn't tried to repo at 60 days plus late. You don't have to sign anything for the lienholder to repo, they will try to sell the car for as much as possible to recover their losses and depending on the balance due after the sale the lienholder just might try to file a judgement against you to collect. I'm not qualified enough to give you advice just tell you what I know from experience. I work F&I occasionally for a auto dealership so I've seen many situation like yours. You may try to negotiate with the lienholder concerning giving your vehicle up to them however there is no way of knowing what the lienholders recourse for the balance due will be. Good Luck.
I would not consider filling bankruptcy unless you have a lot of other debt beside the car that you are unable to pay. Remember you can only file bankruptcy twice in a life time and it says on your credit for 10 years. I am sure you can work something out with bank for your car. Thanks! Heather with BoostMyScore.NET
Thanks for the input. But nonr of it really answers my question. I already said tgey dont want to negotiate. And I stated im aware that bankrupcy will stay on my credit for 10 years. Im not getting anythinh on credit for a very long time. I may never use credit ever! But thanks anyway guys.
