How to clear a charge off?

Question

I had gotten a car loan back in 05 and lost my job in dec 05. Since then i had not paid my monthly payments because I didnt live near the bank, didnt recieve statements, and financially was struggling. SO everything made it harder for me to pay. Now the bank has charged off my car but i still have it. the bank doesnt have my address and i am scared to give it to them because i use the car everyday to get to work. Am i able to sell it but have them pay the bank instead of me? Or would they allow me to make my monthly payments on it and still keep it? I know if i turned it in the would sell it at an auction but my loan is for 23000 and i know the car is only worth like 15000. what is the best way to clear it from my credit or at least get it paid off with out making me broke?

Answer 1

As a charge off, the bank has likely turned the account over to a collection agency. The account is probably showing up on your credit report and adversely affecting it. Generally, it will stay on the report for 7 years. If you are able to make the payments, it may be good to contact the bank and tell them that you are now back working and would like to begin making payments. They may want a larger than normal payment the first month or so to take care of interest that has been accruing. But the bank is likely to work with you, as they always would prefer getting their money back than not. Paying off the account will show on your credit and mitigate the bad effect that it has had.

On the other hand, if they haven't repossessed the car yet, they may not ever do so. But, as you said, this may be due to the fact that they do not know your address. If the bank finds out somehow where you live, then they may repossess the car if you don't contact them. Depending on the circumstances, they may deem you too much of a risk if you do decide to try to repay it and try to repossess it anyway. There is some risk either way. Good luck with your situation. Wish I could be more help.