What does having an automobile repossessed do to my credit? Also, if I am "upside down" on financing will the finance co garnish my wages?
2007-07-18 03:24:37 · 6 answers · asked by WANDA B 1 in Cars & Transportation ➔ Buying & Selling
When you have a car repossessed, the bank will sell the vehicle, usually at auction. The amount that they receive from the sale, less any and all costs and expenses of the sale, will be applied to your loan balance. You then have to pay the difference, usually in a lump sum. If you do not, they can sue you, and garnishee your wages. You most likely will have to pay their lawyers fees also!
You will have the repossession on your credit for 7 years, and the judgment for 7 years after it is finally paid off.
As others have said, the best thing to do is to find a way to pay for the car! Get a second (or third) job. Work day and night 7 days a week if you need to. Do not allow the car to go back!
2007-07-18 04:45:40 · answer #1 · answered by fire4511 7 · 2⤊ 0⤋
Do not allow a repossesion. work overtime, babysit do something.It jacks your credit. The upsidedown talk is all BS thats just a way of saying we wont trust you to finance that amount on top of another.They cannot garnish your wages ,no.But If you go through the repo which i strongly try to persuade you not to do. Then pay pennys on the dollar to the collector on the charge off amount .Thats the only way to repair your credit.i wouldnt even do that if i already went that far in the wrong direction.Id just start building small credit union credit 1K at a time.You can expect a charge off which is the result of an auction after a repo to knock your credit back 100+ ponits.Thats not good when people only trust 700+ on large purchases for a decent rate..Id bust my butt to pay those bills until you can get financed over your current principle.Dont give up!
2007-07-18 03:46:50 · answer #2 · answered by triple sec 2 · 0⤊ 1⤋
Yes, on both counts.
2007-07-18 03:27:15 · answer #3 · answered by WC 7 · 0⤊ 0⤋
File bankruptcy.Or they will make you pay.
2007-07-18 03:37:17 · answer #4 · answered by Anonymous · 0⤊ 1⤋
they have to sue you first
2007-07-18 03:27:00 · answer #5 · answered by Anonymous · 0⤊ 1⤋
screws it up pretty good............
2007-07-18 04:55:59 · answer #6 · answered by DennistheMenace 7 · 0⤊ 0⤋