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Creditors and Bankruptcy/I need to leave in an emergency should I turn car in for repossession
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Question
I am in the process of leaving my abusive relationship. I cannot sell the car
because he will find out, and I owe $15 K and the most I am going to sell it
for maybe $11K. If I turn in the car right before I leave to the bank, I know
that I will have to pay the balance when they auction the car off. I don't have
a job right now, but have saved enough to move and set myself up without
needing a car until I can get a job. How can I pay the balance of the
difference that I will owe on the car? Can they work with me to make
payments? Is there another way I can work with the bank on this issue? I
don't have any debt other than a few credit cards which I have been on time
in making payments. I dont want my credit ruined by turning in the car, and
don't want to file bankruptcy wherever I move to just because of the car. What
advise can you give me. I really appreciate your help. I trying to start a new
life. Thank you
Your options are somewhat limited. The best option is for you to try to sell the car by running an ad in the paper or local advertiser and ask for bids. Inform the bidders that their bid is for a short sale and subject to bank approval. Get all offers in writing and submit the best offer to the bank with a letter asking them to accept the bid as settlement in full. You may have to haggle a bit and get a bit aggressive with the rep at the bank but let them know your options are limited and if they wont accept the offer you will just turn it in and/or file bk.
Along with the written offer and your letter send a copy of the NADA or Kelly Blue Book assessment of value and make sure you try to get close to retail for a private sale.
Other than this unless you can get someone to pay for it you will need to turn it in or file bk. Not good options. But if you tell the bank you want to turn it in they may resist for a while anyway because so many people are having trouble. If you need to buy some time ask them for a two month deferment while you try to sell it.
I hope this helps.
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Answers by Expert:
Michael Brotherton
Expertise
Consumer/Debtor Rights Advocate. Mike Brotherton is a negotiator with over 30 years experience in consumer lending and collections. Mike has 30 years in the credit and collections industry as a former loan officer, debt collector and manager of two finance companies over several years. We are well versed in Loss Mitigation practices and the legal collection process. We have helped literally thousands of people over many years overcome serious financial problems such as foreclosure, creditor lawsuits and abuse by debt collectors. For more information about resolving your "financial emergency" visit www.financialemergency.com. We actively promote Fair Debt Collection Practices and other consumer protection laws. We teach DEBTOR RIGHTS and enforcement of those rights. The more informed you are of your rights and the credit collections practices of creditors the more peace you can have dealing with your FINANCIAL EMERGENCY. Most financial problems are fairly common and as such have some very common solutions. The key is understanding your rights in the collection process and how to enforce them if need be. Primary business- Debtor Rights Advocacy and Debt Mitigation relating to foreclosure, creditor lawsuits, and other serious financial problems. www.financialemergency.com (copy and paste in browser).
Experience
28 years in financial services industry as a loan officer and debt collctor. Developed bankruptcy and loss prevention manual for large finance company for manager training. 15 years as a debt counselor and consumer advocate.
Education/Credentials
Veterans sponsored OJT Manager Candidate Scool for AVCO Financial Services, Keystones to Management for ITT Financial Services, Certified Finance Management for Associates Financial Services.
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