what are the steps that I can take. My car got repoed today, and I couldn't afford to pay for it anyways. If the car is auctioned, I understand that I am responsible for the difference. Do they have to lesson the interest rate for that amount. What happens if I refuse to pay the difference? Can I claim this on a bankruptcy? Someone please help
2006-12-15 07:34:48 · 13 answers · asked by schleef42004 2 in Cars & Transportation ➔ Other - Cars & Transportation
I would imagine that you can file for bankruptcy. As your car has been repossesed I can't imagine how your credit rating could be much worse. Its probably in the sewer anyway at this point. Just know that the only place you'll be able to get a car on credit is one of those fly-by-night joints that tell you if you miss one WEEKLY payment...voom!...car's hooked and whisked away
2006-12-15 07:38:28 · answer #1 · answered by Quasimodo 7 · 0⤊ 0⤋
Your Credit rating is very poor now. The finance company will charge you the Maximum interest rate for the remainder of the Loan balance. The Maximum interest rate is determined by your State...do not be surprised to see an interest rate of 25 percent.
Your car will be auctioned off at a fraction of the original cost.
You will be required to pay the difference.
Contact a credit restoration company and see if they can assist you. Filing Back bankruptcy is the final step and the most damaging of all.
Good luck to you.
2006-12-15 15:48:00 · answer #2 · answered by Mav 6 · 0⤊ 0⤋
If you can't pay for the car or work something out with the repossessor, you can't do anything about it.
As far as bankruptcy, you can file it as a debt on a chapter 7 or chapter 13 bankruptcy. The debt will be eliminated, but it'll be on your credit record for the next 7-10 years. If you're good with money in during that time, though, you shouldn't have any major problems getting credit after 6 months or so.
2006-12-15 15:39:24 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You are correct, they will try to make you pay the difference after the auction. Depending on the finance company they can work with you. Even though it will show up on your credit, you can still get into another car. There are lots of 2nd chance finance companies. Depanding on how fast you act you can get into another one before it shows on your credit report. If you claimed bankruptcy prior to it being repoed then you would have been okay.
2006-12-15 15:39:32 · answer #4 · answered by rukk1us 1 · 0⤊ 0⤋
I don't know about the other stuff but I do know you will be able to claim it if you file bankruptcy. You claim everything you owe on and it will probably be gone in 2-3 years, depending on what kind of bankruptcy you file.
2006-12-15 15:44:59 · answer #5 · answered by ParisLynn16 3 · 0⤊ 0⤋
Yes, you will be responsible for the difference. They should no longer bill you for payments for the difference. They will will file civil suit against you and get a judgement. After that, they will seek a court order to go after any assets you have left. If that doesnt work, they will garnish your wages. If you qualify under the new Bankruptcy Rules, you could file CH7 and relieve this debt. You may get relief under Ch 13 but that will depend on your debt load and how much you make. The court would decide in Ch 13.
2006-12-15 15:37:21 · answer #6 · answered by Melli 6 · 2⤊ 1⤋
responsible for the difference. Don't have to lessen the interest rate. If you refuse to pay , they sue you in court. You can claim it on bankruptcy.
2006-12-15 15:38:03 · answer #7 · answered by ? 7 · 0⤊ 0⤋
Bottom Line is that they REALLY don't want to keep your car. They would REALLY prefer for you to make the 2 or 3 payments that you probably owe + towing fee and give your car BACK to you.
WHY? It's a lot of trouble and paperwork for them to sell your car + they're losing money until it does.
You could hire a lawyer to settle it with them.
Question: If you couldn't afford it to begin with...WHY did you buy it.
Hopefully, you'll be able to get a car within your financial means next time!
2006-12-15 15:54:39 · answer #8 · answered by David 2 · 0⤊ 0⤋
OK....they will auction it....which will lessen what you owe. The remaining will be what you owe and no...the interest is still there...you still owe the money and they still want their interest. If you dont' pay it...BAM...credit report...sticks around for approximately 7 years on your report.
Not too sure about a bankruptcy tho...
2006-12-15 15:37:30 · answer #9 · answered by Nibbles 5 · 0⤊ 1⤋
you will pay the difference of what you owe and what the car sold for....dont pay? you can be dunned for the amount...maybe you can claim it in bankruptcy.....tight spot for you...good luck
2006-12-15 15:38:04 · answer #10 · answered by The Emperor of Ecstasy 5 · 0⤊ 0⤋