AboutRegan Shinski Expertise I can answer questions on collections, repossessions, bankruptcy, credit repair, credit counseling, FICO scores, credit planning, and the cause and effect of credit related decisions. I can also answer questions on collection settlements and preparing to sue your creditors for false debts and credit reporting.
Experience Fifteen years ago I was financially devasted due to severe health issues. I filed bankruptcy, had a foreclosure, car repossession, tax lien, and ruined credit. I immersed myself in credit law. I settled dozens of accounts and had them removed to improve my credit. I personally sued four creditors and collection agencies and won cash settlements for their false reporting on my credit reports.
Since then, I have completely recovered and have nearly $100,000 in revolving credit lines and perfect credit. I have owned a credit repair company for the past five years and have an additional three years of specific work in the collections and debt management industry.
I am fully versed in the Fair Debt Collection Practices Acts (FDCPA), Fair Credit Reporting Act (FCRA), and have used them successfully in collection settlements and lawsuits for myself and others. I am also familiar with and abide by the Credit Repair Organizations Act (CROA).
I have deleted or helped delete literally hundreds and hundreds of derogatory items from consumers' credit reports and helped negotiate many settlements with collection agencies and creditors. I have also advised people on bankruptcy at any stage.
In the current credit market, I have successfully advised numerous people on how to obtain credit and how to negotiate for better terms.
Education/Credentials BA - University of Minnesota
Question I bought a F-150 in June of this year for 28K,everything was fine when I bought it and now things are somewhere below fair money wise. I work in the death care industry and my job is secure but that doesn't mean pay is staying the same as it was, and death care doesn't pay that great to begin with! My question is if I have to default on the loan how bad will it be for my credit? When does it come down to eating and having a place to live or driving a nice truck?! But yeah how bad will it damage my credit to default?
Answer Hi Dave:
Sorry you are in this situation, but certainly you are not alone! A repossession is very bad for your credit, up there near the top of bad things. If the repossession is done legally, the lien holder will have to obtain the vehicle and sell it in a "commercially reasonable manner." This is typically via public auction. You can then be held liable for the shortfall in the money they collected and the amount you owed.
I mention all of this because it could have an impact on how bad your credit takes a hit. Some companies will only report the repo as basically a charge-off. Other may sell the shortfall and a collection agency will then add ANOTHER account to your credit reports. Still others may pursue you through the courts and get a judgement. The judgement will then show separately on your reports.
The impact is impossible to say for certain. Anyone that tells you "your score will go down XX points" is lying. The actual scoring mechanisms are tightly guarded and public does not know the formulas. In general, the thinner your credit files, the bigger the impact. Additionally, the higher your score to begin with the higher the drop will be. If you already have poor credit, the amount will not go down as much but still severe. Your ability to get future auto and home loans will also be impacted. Typical scores can drop from 30-150 points or more.
Credit repair can sometime mitigate this after the fact. Feel free to contact me at that point as that is my main business.
You can try to work with your lender. Many are more flexible no in this tough economy. Some may offer deferred payments or even a "short sale" on the vehicle. It is worth a shot to contact them rather than just letting it go without trying.
Good luck, I wish I had better news for you.
Regan
813-454-1459
