how will this affect my credit, or what will it go as, repo, or bad debt?
2007-08-31 07:00:36 · 2 answers · asked by james j l 1 in Business & Finance ➔ Credit
Auto finance is what I do for a living and since you mentioned repossession I am assuming that you are talking about giving back a vehicle.
This will show up as a repossession on your credit and that is one of the worst things that can show without a bankruptcy to explain it.
The lender will sell the vehicle at auction for less then it's worth and come after you for the difference between what you owed at the time of repossession and what they sold it for plus all fees for the repossession, towing, storage, interest reconditioning, lawyers and anything else they can think of. This can amount to several thousand dollars and if you do not pay they can take you to court and get a judgment, at that point they can attach your bank accounts, garnish your wages (if your State allows it) and file liens on any other property you may own like cars, boats, land and homes.
All of this activity will show on your credit report for 7-years and make it almost impossible for you to get any other types of loans without making huge down payments, paying huge fees and State maximum interest rates.
2007-08-31 07:29:43 · answer #1 · answered by ? 7 · 0⤊ 0⤋
A voluntary repo is going to show up the same as an involuntary repo.
Have you considered just selling the collateral and paying off the balance? Or is this one of those upside down loans?
2007-08-31 14:19:59 · answer #2 · answered by bdancer222 7 · 0⤊ 0⤋