Creditors and Bankruptcy/car in bankrupcty

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Expert: Ontrack Financial Group llc - 1/8/2009


Question
My mom is the main holder of my car loan and my husband is the co-signer we are going through a bankruptcy and would like to include the car. We are current on the payments but are so far upside down on the car that we would like to include it to get out from under it. We know it will affect my mothers credit just not sure what the ramifications will be and how to proceed do we first do a voluntary reposession then add the defaulted loan?
thanks tamra

Answer
Dear Tamra,

Thank you for your question.  

You're correct by returning the car it will have a major impact on your mothers credit.  

If you and your husband file bankruptcy ( and include the car ), then the bank will begin to contact your mother for the deficient balance.  

They may even file suit.  

Also,

If your thinking about purchasing another car with a bankruptcy on your credit along with the current credit environment it may be a long shot.

If your going to file bankruptcy, you can
Bring the vehicle back to the dealer and include the deficient amount, or wait until you file and give the vehicle back then.

Warm regards,

Ontrack Financial Group llc  

Creditors and Bankruptcy

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With the credit market on a brink of collapse, the future of having good credit will be paramount. Loans will be near impossible to obtain with strict lending practices around the corner. Debt collectors and Law offices will use even stronger tactics to recover more of your hard earned money. Protecting you and your credit has to be a top priority. In 2000 Ontrack Financial Group llc founded the credit arbitration movement. More and more companies entered into the arena and new business models joined old ones. Only one company has the attitute and aptitude to truly assist our clients. Ontrack Financial Group llc is that company! With our proven credit arbitration solution, you can become Charged Off Debt free within three years or less. Our clients have eliminated their Charged Off Debts with our service and avoided communication with collection agencies and law offices in the process. Since the inception of Ontrack Financial Group™, we have continued assisting our nation-wide clientele with their burdensome unsecured debt and has enrolled thousands clients in its programs, managing millions of debt for its clients without one complaint. Ontrack Financial Group™ is a for-profit, private company and is not affiliated with the credit bureaus or the credit industry. As a result, our services are unbiased and independent, which allows us to better serve the consumer.

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