About 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.
Mike is well versed in Loss Mitigation practices and the legal collection process. He has 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.
FinancialEmergency.com is a consumer web site which actively promotes 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 30 years experience negotiating disputes and resolving financial issues related to consumer debt, corporate debt, and mortgage restructuriing.
Question Ok my wife bought a car while we were split up for a while and now we are back together. She is no longer working due to her being pregnant and I am on a fixed income due to working for the military.. no chance for overtime or a second job. we are paying $320 a month on a car that has a Kelley blue book value of around $3700 but the loan owed still is closer to $8000 and she's had the car for over a year and a half now. I didn't know about all this seeing as how I had nothing to do with the purchase but after calling and asking the right questions I found out. Well we are back together and the monthly bills are way to much .. my question(s) are...
1) can they get away with upping the price on the car that high when the sticker price she was told she was buying it for was $8995 (charging more than what was agreed.. when asked they told me we were paying roughly $12000 for the car plus fees)
2) can it be refinanced with me on the title since they are going after me for the money anyway... the exact words used when asked about turning it in for a voluntary repo was "if you don't pay we will go to your chain of command and get the money thru pay deductions." even though I'm no where on the loan.
3) is there a way to do some sort of voluntary repo type deal on the terms of family status change.. i've heard of some places doing refinances due to a change in status such as a family death or something.
pretty much i don't see how they can charge that much over the worth of the car (it's $3700 in perfect condition and it's no where near that) AND come after me for the payments even though I am no where on the paperwork, even though i am the only one in the house working right now.
thank you for any advice
Answer They cannot alter the contract in any way but if your wife agreed to pay more for the car than what it is worth then they can collect what she agreed to.
If she isn't working then the worse that could happen at this point is for them to repo the car, sell it for whatever they can, then if your wife goes back to work they may attempt to garnishee her check. This depends on your state.
Whether they can come after you depends also on your state. Some states do allow them to come after you. I suspect though that they cannot and they are probably bluffing. Let me know what state you are in and I will check it out.
At this point I do not believe they can go after you and your paycheck. Even if you are in a state that allows them to they cannot garnishee your check with you being active duty military. Even if you were obligated they can only contact your CO and ask them to talk to you about the debt.
You may consider refinancing the vehicle in your name only if they agree to settle for fair market value. They may resist but it has been done. A repo is a repo whether it is voluntary or involuntary so try to avoid this if at all possible. You might try to sell it and negotiate a settlement in full.
Worse case let them have the vehicle and sell it. They cannot get anything from your wife and if my suspicions are true they cant touch you either.
Ultimately bankruptcy could absolve you and your wife from this. Chapter 13 may reduce e the amount owed or reduce payments. Consult with an attorney and see what your bk options are.
Don't let the collectors intimidate you or let fear influence your decisions. Get the facts concerning your rights and your options before taking action.
Tell me what state you are in and I will let you know whether they can do anything to you directly or not. Do the best you can with what you have. Things will work out.
