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Creditors and Bankruptcy/Defaulting on a Vehicle Loan


I'm not sure if this is the type of question you would be answering, feel free to point me elsewhere if I'm a little off.
We live in Florida. A few years ago my husband purchased a commercial vehicle, a semi-tractor. Recently he embarked on a career change and is no longer driving. He's been trying to sell the semi for the last four or five months, with no luck. The payments are so high that he's been struggling to keep up. He's started getting collections notices from other lenders, such as the mortgage company and the HOA. We've crunched the numbers, without this payment he'd be able to catch up on everything in a few months.
My main question is, since we've struggled to sell, what would be the long term penalty for just defaulting on the loan, and letting the lender reposess the tractor? I went through a bankruptcy many years ago before we were married but otherwise have never just purposefully defaulted on a lender. Or, would a bankruptcy and a settlement be better in the long run? All of our assets are still separate from before we were married, so I'm not too worried about being impacted. The tractor and the house are really his only assets, he doesn't even have a retirement, and I hesitate to advise him to look into bankruptcy since it's only the truck that is tipping him over.  
Any advice would be appreciated.

Leon Bayer
Leon Bayer  
I suggest you and your husband go see several bankruptcy lawyers, right away. I recommend consulting more than one, because legal advice can sometimes differ between lawyers, (not to mention personality and temperament).

After the lender repossesses the truck, they will sell it at an auction. What they get for the truck will be subtracted from what your husband owes them. After that, your husband should expect to be sued for the amount of any left over debt, plus storage, repo fees, sales costs, court costs, and lawyer fees. After getting a court judgment, they may be able to garnish his wages and put a lien on his house.

Repossession is the disease, it is not the cure. If he is able to do a simple bankruptcy case, he may be able to get away from the truck debt.

Most bankruptcy lawyers will give you a free consultation.

Let me also give you a tip on getting a great bankruptcy lawyer at a very reduced cost. It's in my free bankruptcy ebook. It's called The Best Bankruptcy Book. Go to  

Creditors and Bankruptcy

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Los Angeles Bankruptcy Attorney Leon Bayer


I can answer all questions relating to debt collection, credit reporting problems, credit scores, bankruptcy, debt settlements, debt settlement scams, and dealing with debt collectors. For many years I have been one of your volunteer experts for the topic "Bankruptcy Law". I would like to receive more questions. I'm thinking that many relevant questions get asked under this catagory as well as my own. See my stats, below: Los Angeles Bankruptcy Lawyer Leon D. Bayer U.S. Available View Profile Ask A Question View Past Answers Knowledgeability9.96 Clarity of Response9.93 Politeness9.97 Response Time(hr)14.6 --Last 90 Days(hr)7.6 Total Questions1119


34 years as a practicing bankruptcy attorney, published book author on topics of bankruptcy and foreclosure. See,


BA degree, J.D., admitted to California Bar in 1979.

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President, 1995-1996-Los Angeles Bankruptcy Forum; Member - Los Angeles County Bar Association Committee on Commercial Law & Bankruptcy, 1988. Law Advisory Commission-Personal & Small Business Bankruptcy Law of the State Bar of California, 1996-2000

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Over 15,000 bankruptcy cases.

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