Auto Repo

I worked in auto finance nearly 10 years. I worked accounts that were out for repo.

Bankruptcy isn't a good choice if the repo is your only debt. Keep in mind the bankruptcy would be on your credit for just as many years as that repo, hurting your credit.

A better option would be -- Find out what your deficiency balance is and you can likely negotiate a settlement. Get ANY agreements in writing for your protection. Keep asking and negotiating. Do it at a time when you can pay a lump... like tax return if you get one... and get them to agree to report "Paid in FULL" on your credit. If one collector says no, wait until you get a different one. Again, I can't stress enough, get it in WRITING. Don't take someones word that they will do it. Get in writing the amount of settlement, that this takes care of your debt with zero balance remaining and that they will report to the credit reporting agencies as 'paid in full'...

Until then - get a cash car. My husband had a 1500 cash car that made it two years. We saved bundles on car payments during that and still sold that little car for $600 when we were done! :)

Good luck.

ok, you will eventually have to pay for it, I work in collections, comercial (farm equip) but my father and sister do auto ... here is how it works
1. Repo the car
2. Sell the car
3. Bill you for the difference
Sometimes, you can get lucky like my roomate and the car will sell for more then you owe and it will be removed from your credit as a "0" balance or as Paid... if you are not so lucky you will have to pay the difference from what the car was sold as and what you owe the lender.
Fees you ARE responsible for per your contract
1. Principle
2. Interest
3. Repo Fees
4. Fees to fix up the car to sell (if needed)
Yes, you are fully responsible for ANY fees the finance company had to pay in order to correct this debt. After 7 years it will probably fall off your credit if it is not paid, but BK is normally not the answer. with many of the new laws things like this are not protected. I am not telling you to not see a lawyer to find out if that can help but do not count on it being the answer.

I think it would depend on the amount of the deficiency balance and whether or not you have any more outstanding debt. Bankruptcy might make sense if you have other unsecured debt, such as credit card, or especially if you were in default on your house. If the balance is not too high, I would try to settle with the auto lender. Many bankruptcy attorneys offer free consultations. Check for recommendations on line and see if you can meet with someone to discuss your options.

A friend of mine had bought a program car and then the first week her husband had a wreck and nearly died. The car payment was taken out of her checking account and even after the insurance paid off the car as totaled the car payment kept being taken out. They said she still owed the car payment, full amount, and would not stop. She had to totally close the account and open another at a different band to get them to stop. They did not try and sue them or anything so I think they were just getting extra money and if she had not been on top of things they would have continued taking that money long into the future. BTW, the car loan amount was paid off fully by their insurance.

While on vacation in 2001 we had hit a wall of rain and hydroplaned off the highway and onto a fence. The car was totaled and we got a good refund check from it. We were able to make a down payment and get 2 program cars, with the loan for the remainder through the credit union at my husbands work. He got laid off the next month from work. The ended up repossessing the cars and they took out income tax refund until they were paid off. It sucked but the other option was garnishment and he was still on unemployment. The companies will eventually get their money but it will just take them some time.

Bankruptcy would not be my choice in this matter. If you are going to loose much much more through this trial of job loss then I would wait until it is worse and then try and hire an attorney to file. Otherwise go through some free credit debt help to pay everything off once you are working again. We did that back in the early 90's to get rid of credit card debt so we could get everyone paid off. They took $1300 a month out of our take home pay and they paid the bills we designated them to pay. We kept the rest for living expenses and it worked very well. The credit counselor got the credit card companies to stop interest and they were basically guaranteeing the payment so the companies were glad to do it. We were able to get out debt down to nearly nothing.

I think paying off debt is nice but if you just cannot do it due to job loss or life changing events then not paying is what happens. My husband had to have open heart surgery to keep him alive and we still owe the hospital thousands and thousands of dollars. it will never be paid because he is on disability now, they take our refund check every year...but it is the way it has to be. Sometimes life changes things for us and it can't be helped. Try your best to pay these bills but if you really cannot then consider going through the bankruptcy courts.

Hi Mama-
I feel for you in this economy. My best advice is to seek out a credit counselor about your debts, what to do regarding paying them off, or seeing if bankruptcy is your best option. I know that the hours being cut is not your fault. My hubby and I have the same problem. He was working for the state making a decent income ($16-$17/hour) and then job after job, the state let people go. He was out of a job for almost 9 months, with no luck on the unemployment end. I really didn't think we were going to make it. The only job he could get was minimum wage at a music store. We have a lot of debt racked up (previous to this situation) due to just being poor and not budgeting well. Some of the expenses, there was nothing we could do. We had to have groceries, heating and electricity, fuel for the car, rent paid, etc. It's not like you can just NOT pay those things. So other bills sort of went by the wayside. We paid them, but as little as humanly possible. In my situation, even though we lost half of our income as a couple, I felt that because the debts were ours and we had spent that money, we still owed that money, regardless. I used quicken to make a family budget, I took a crown financial course from my church, and I went a met with a credit counselor. Alot of bill collectors, your mortgage company included, will work with you to keep you in your house and keep you paying them money. Because in the end, what they really want is their cash. Plain and simple. Do not allow them to scare you, but do realise that if you want to keep something, it costs. Bankruptcy, if you decide to file, has options, but the lawyers are expensive. A co-worker of mine filed last year. It cost her just under $2,000 to file. She was able to keep her house (her car was paid for, luckily), and then all of her debts, credit or otherwise, were gone. There are repercussions, though, like bad credit, etc.One thing I will say is that you can call your mortgage company first, see what kind of deal to make with them. Call your creditors before you miss payments and let them know not only your situation, but that you would like to pay them but need a lower payment and a fixed rate. This process includes freezing all your credit card accounts/closing them and just making payment after payment until they are gone.
I am not trying to say that you are in my shoes, however I do feel for you and hope that you can keep your home and make it on your current income. Just think, if you can budget yourself down to living on 20 hours a week, imagine if you ever get an increase, what kind of savings you could have! It's all in the silver lining!
Good luck mama- call for a consult to weigh your options. It's a big decision and you need all the info you can get.
-E. M

Call a bankruptcy attorney. You might be able to do a chapter 13 and keep the car.