I had a Truck Repo'ed and someone was telling me if I don't pay the bill for 7 years it goes off my credit and I don't have to pay it, ALSO he told me that they can't take it out of my pay check.
So yeah, I know this is not okay, but I would like to know if this is true.
2007-03-24 20:17:41 · 4 answers · asked by jabrw0ke 1 in Business & Finance ➔ Credit
If you are located in the U.S. - repo's fall under the UCC for a 4 year collecting SOL. The SOL starts to run on the day the truck was sold creating the deficiency.
If the company failed to provide all of the required notices before and after the sale in a timely and legal manner, or failed to sell the truck in a timely and legal manner - that would make the repo an illegal repo and the deficiency would legally be uncollectible.
They can report for 7 years starting from the day the truck was sold creating the deficiency. (but they must report correctly)
Whether they can garnishing your paycheck or not depends on your states exemption statutes.
2007-03-24 21:30:19 · answer #1 · answered by echo 7 · 0⤊ 0⤋
It is true that all negative information stays on your credit report for seven years. It is NOT true that once it falls off your report you don't have to pay it. Since you were in breach of the contract with the finance company, they have a right to attempt to collect the money you owe - indefinitely. Just b/c the credit bureaus may not report it does not mean you don't owe it.
As far as garnishment is concerned, it all depends on your state regulations. If they follow all the legal procedures to a T and file a judgment against you and you do not respond, garnishment could be an option for them to recover their money - I've seen it happen before.
My advice is that you own up to what happened and try to work with the company to get everything straightened out.
2007-03-25 08:51:50 · answer #2 · answered by YSIC 7 · 0⤊ 0⤋
From what I know, if you don't pay, the negative rating will drop from your credit report in about 7 years... However, you can be sued by the creditor (they're going to sell the debt to an attorney) and they can garnish your wages. In most states they can take up to 25% of your take home pay... that's IF they know where you work. They can also clean out your bank account and and put liens on your property. It mostly depends on the amount. If it's an amount that the attorney feels is worth going after they'll come after you. It takes a while, but trust that they're going to try to get some money out of you. If you are proactive you can settle with them for less than the amount that you owe... sometimes as low as 50%, but if you try to duck them they're going to try to get all they can because they have to pay for court costs, filings, and attorney fees. Hope that helps.
2007-03-25 13:02:34 · answer #3 · answered by It's Not YOU it's Me! 2 · 0⤊ 0⤋
Bad credit is one of the worst problems to have... however there exists a solution.
I will hereby talk from my personal experience.
I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details,
if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first,
a good place to start in my humble opinion is astraight to the point ebook with question and answer I found :
http://umgarticles.atspace.com/debt-consolidation.htm
if it helps kindly remember me in your voting!.. cheers!
2007-03-27 01:50:09 · answer #4 · answered by gabriel jones 4 · 0⤊ 0⤋