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Collections Law/voluntary repossession
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Question
I had a vehicle that I could no longer afford. I contacted the lender and returned the car. I did not understand about voluntary repossession or the responsibility of repaying the differnce of the value after it was sold by them. I am told that I now owe $16,000. It has been on my credit report for the last 5 or 6 years. I do not know how to approach the company regarding repayment. In additon, I can not afford to pay them 16,000. Should I take a settlement and a payment plan?
Settling this with the creditor or the collection agency that says you owe the money would be the worst possible thing you could do at this point. I say this because, although they would gladly take your money in settlement, they would then mark it on your credit report as a paid collection account, or as an account that was settled for less than the amount you owed. They may claim that they will give you a positive credit entry, but they won’t. They rarely do – but they will lie and say they will just to persuade you to pay them something. Not just that, but when you make a settlement, the seven year period that this would be on your credit report will start all over again. Bottom line, don’t call them, don’t write to them, don’t do anything with them at this point, even if you have the money to pay them off.
Insofar as the negative entry that is already there, you have a couple of options. However, I cannot describe all of your options here in detail because there are facts that you don’t state in your question. Call me on my cell phone if you like and I will be glad to talk to you. I will not charge you just to talk on the phone. 661 492-2673
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Answers by Expert:
John Hall
Expertise
Law school graduate, Juris Doctorate (J.D.) Degree; Over 25 years of experience throughout the United States in bankruptcy law matters (Chapters 7, 11, and 13 of the United States Bankruptcy Code) primarily representing individual debtors with consumer debt or small businesses; Experience has included all aspects of debtor/creditor relations.
Experience
FREE BANKRUPTCY HELP. If you are being sued, if your home is being foreclosed, or if you are being harassed by bill collectors, filing for bankruptcy may be a quick and inexpensive solution.. The mere filing of a bankruptcy will operate as a federal court order (it is called an automatic stay) to stop all bill collection efforts, including lawsuits that are pending or ongoing. Bankruptcy is a legitimate way to meet your problems with debt head-on. The bankruptcy law is designed to give you a second chance to make a new start without the psychological and financial burden of pressing debts that you are unable to pay. Depending on what state you live in and what your assets are, it is very unlikely that you are going to have to lose anything if you file for bankruptcy, and this is something that you can do immediately without having to pay the $500 to $1,500 attorney fees that most attorneys charge. Also, you might be surprised that you can file for bankruptcy and that it will not have the devastating effect on your credit that most bill collectors describe. Life is too short to have all this anxiety over losing your car through repossession, getting evicted from your home, or losing your home through foreclosure. Bankruptcy law was designed to give you a second chance. I will not charge you just to talk on the phone. Call me at 432 853-5711, or send me an email at j_h14@hotmail.com with your telephone number, and I will call you back.
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