Creditors and Bankruptcy/Car Charge off

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Expert: Regan Shinski - 12/30/2010


Question
My dad cosigned for me. He filed bankruptcy over the summer and listed my car in the Bankruptcy.My dad stated the Bankruptcy was denied however when i tried to trade my car in the Sales person told me it was on my credit as a charge  off .My car is now listed as a total loss with my insurance company. What will happen? Will this still prevent me from getting a new Car. Thanks

Answer
Hi Yolanda:

I'm not sure I fully understand what happened here.  Were you making payments?  Are the payments up-to-date?  If the payments have been made, it is a serious error in your credit that can be fixed fairly easily.

If you and your dad did NOT make the payments, it is much more complicated.  The first concern is the status of the car.  A total loss may mean anything from insurance fraud to your insurance company writing it off because they could not find the car.  In either of those cases, you are going to run into trouble with registering and tagging the vehicle.  It may even be reported as stolen if your state allows the lien holder to do so.

The fact that it is also listed as a charge-off indicates the creditor is at least claiming they have not been paid.   This likely will have to be dealt with before you can get serious financing for a new car.  What has to happen is the balance owed has to be paid.  This can be through paying it - obviously - or you can turn the car in.  The creditor then needs to sell the vehicle and deduct the sale amount from the balance.  You always get screwed over on the price because it usually goes to auction for much less than it is actually worth and the repo and sale costs get added to the amount you owe.  So paying it or getting new financing is always preferred.

Another option, strictly from the credit standpoint, is to complete credit repair.  This involves working to try and get the negative information removed from your reports so you can refinance or get a new vehicle.  Go to www.ficofighter.com for more information.  This will not deal with the legal status of the vehicle or any possible amounts you owe but the goal is to clean up your credit so you can get financing in the short term

Good luck,
Regan

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Creditors and Bankruptcy

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Regan 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

Past/Present Clients
(private)

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