We have a car loa that has set us back by hundreds of dollars and is making it almost impossible to pay our rent and other bills.It's either pay this car loan or pay the rent.
Or should we let them have the car and lease one?
If we give them the car will it still go on our credit?
2007-09-27 16:04:14 · 10 answers · asked by Anonymous in Business & Finance ➔ Credit
Kate: WE HAVE NO MONEY!
2007-09-27 16:13:55 · update #1
Voluntary Repo, yes it will affect your score, but not paying it which will happen eventually is worse.A car we can live without, a home ?
2007-09-27 16:12:32 · answer #1 · answered by Special K 5 · 1⤊ 0⤋
There is really not enough information to recommend it either way. However, bankruptcy should be the last resort.
A Repo is a Repo, it does not matter if you turn it in or they come and get it. Your report will show the reposession. When you turn it in they will sell it at auction for much less than the loan value. You are still responsible for that difference. For example if your loan is $10,000 and they sell the car for $6,000 you will still owe $4,000.
If you don't pay that amount they then can add another collection account and eventually file a suit for the money. With a Repo, and collection account for the difference on your report you will not be able to get a lease or another car loan for quite a while.
What are these other bills, and why do you feel your only choice is between paying the rent or the car? If these are credit card bills you might want to talk to a reputible Credit Counseling Organization. They might be able to help you with these bills.
2007-09-27 23:33:05 · answer #2 · answered by OC1999 7 · 0⤊ 0⤋
Talk to your lender 1st off, make them aware of whats happening rather than just dealing with calls on late payments. See if your lender will qualify you for a home equity loan to clear up the difference between what you owe on your car and what its actually worth. Then you can sell the car yourself, payoff most of the loan, and use the home equity loan to make up the difference and clear up the car's title, hopefully even leaving a little money left over to buy an old clunker to get you back on your feet.
You cannot sell your car to anyone else for less money than what you owe with a clear title, so talk to your bank 1st!
Above all else, your home is more important than your car, don't screw up your home payment.
Leasing is not evil like the other answers show, it gets you more new car for less money, but you dont need a new car to fix your troubles, you just need lower payments than what you already have.
Giving back the car will hurt your credit.
2007-09-28 12:15:15 · answer #3 · answered by f*ck yahoo, i'm doing google 4 · 0⤊ 0⤋
Chapter 7 bankruptcy is the commonest denotation of bankruptcy. It stands for waiving or canceling of debts that you have incurred. As an individual, you can select between Chapter 13 or Chapter 7 bankruptcy. Selecting between the two is not easy. The bankruptcy court will study your circumstances before deciding which type of bankruptcy is applicable to you.
The Chapter 7 bankruptcy is applicable if you have no regular sources of income. It works by reducing or clearing off all your debts. You can then make a fresh start without having to worry about having to pay your debts.
http://get-out-of-the-debt-trap.com/category/Information-on-Chapter-7-Bankrupt.html
2007-09-28 08:51:35 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Why not try selling the car?
That would avoid bankruptcy and the repossession.
Giving them the car is a voluntary repo and goes on your credit. I would really recommend putting on the market and selling it to pay off the loan.
2007-09-27 23:22:03 · answer #5 · answered by gogo7 4 · 1⤊ 0⤋
TAKE THE BUS. Try Credit Card Debt Consolidate Agencies. A BK costs a lot in lawyer fees. Stays basically for a long time around 10 years .SEVEN YEARS IS A LIE !!!!!! BK also can affect future employment because employer can pull credit reports.
2007-09-27 23:46:18 · answer #6 · answered by sparkles 6 · 0⤊ 0⤋
If you let them have the car, it will definitely hurt your credit. Your best chance is to sell the car, hopefully you'll get enough money to pay off this car. They you can buy a cheaper one if you absolutely must have a car. Never lease a car...it is asking for trouble. Buy an inexpensive second hand car.
Next, one of you have to get another job to get yourself out of this immediate mess you're in. You have to make it work out.
2007-09-27 23:15:28 · answer #7 · answered by butrcupps 6 · 1⤊ 0⤋
Lease is more expensive ,
And are only worth it if used as a company vehicle because the lease would be a business expense .
Returning the vehicle will still leave you liable for the difference of what they get when they sell it and your loan .
Find your own buyer ( you'll still loose but not as much ) then ,
Buy a great used car .
>
2007-09-27 23:10:43 · answer #8 · answered by kate 7 · 0⤊ 1⤋
Hi,
It's a difficult choice indeed and only you can be the right judge. You can visit http://bankruptcy.grantsaccess.info to get your query on bankruptcy well clarified. Good luck!
2007-09-27 23:15:29 · answer #9 · answered by Alvin 2 · 1⤊ 0⤋
sell the car, get a $1000 junker.
2007-09-27 23:37:32 · answer #10 · answered by Anonymous · 1⤊ 0⤋