Information on paying off a balance on voluntary repossession - The Bills.com Blog

What I read here is what I am going through right now with the truck that I voluntary had the bank take back. They sold it for a cheaper price and the reamaining balance that I have to owe them is 22,659.34 and it was still a brand new truck that I had only for 4 to 5 months. I talked to credit unions and debt companies on what I should do. They all said the same thing that I was ripped off and I just need to pay in anyway that I can. Right now I would like to do a settlement but there is one problem of finding a bank that will help me. I just need help of getting this problem solved of what is the next best step to paying this debt.

Linda, In order to go through a settlement program you have to be able to afford a fixed monthly payment. How much it will be, will depend on the total amount of debt that you would enroll into the program. What you now owe the bank is reffered to as a 'Deficiency Balance'. These forms of debt do qualify for a settlement program. I would suggest that you contact Freedom Debt Relief for a free consultation, they will give you more details about the debt settlement program. They are a good company and are rated on the Better Business Bureau.

I had my vehicle repossesse, and i owe up to 5,000 dollars on it. Currently am employed due to the fact that the buyer who is my Dad recently completed his diplomatic mission and returned to my home country. I am the co- buyer and am willing to pay this debt but i wont be able to work untill december hopefully. What are my options? How will this affect my stay in thiss country? I need help ASAP

I am not sure about the specifics of your situation, but it seems that you are not a US citizen? In any case, the balance of the repossession will be reported on both your Father's and your credit profile and will affect both of your credit scores negatively. You will have to resolve that debt and get it paid off as soon as possible after which you can start the process of rebuilding your credit. I am not aware of rules regarding this bad debt and the issue of your stay in the US, but I do not think it will affect it given that financial matters are civil in nature, and you cannot get deported for a civil suit.

I thought I was in the process of re-financing my car with the bank (I mailed them the info they needed and had spoken with one of their reps), but they had the car repoed before I got an approval or denial letter. When I called, they said I would have to pay the back owed amount in addition to the towing fees etc...in order to get it out. Obviously, I can not afford to do that as I was attemtpting to lower my payments. What can they do to me (take from me) if I don't pay? Can they come after my husband for money even though he is not a co-signer? Can they take money from my bank account or paychecks?

Please see here: http://www.bills.com/blog/creditor-actions-on-a-deficiency-balance/

My niece lost her father and would like to take over is truck, from what we understand his family let it get repoed. How do we find out who and where to find the vehicle

It is probably the original creditor who had the vehicle repossessed. You can either look for their information in any previous monthly statement or obtain a credit report for the deceased father. Bear in mind that the lender will not return the vehicle unless you pay them the entire amount of the loan outstanding, plus repo fees and storage.

My car is going to be repossessed by Wells Fargo Auto Finance in Reno Nv. within a month due to my unemployment and inability to pay. I asked them where I can drop the car off for a voluntary repossession and they wont tell me. They simply said "we don't want the car." However, I need to avoid the repossession charges. Do you know how I can find out where to drop the car off? Thanks

I'm surprised that your auto finance company is unwilling to give you the information you need to surrender your vehicle, especially since you are already falling behind on auto payment. Repossession is costly and time consuming, and lenders rarely recoup the costs, so most allow, or even recommend, voluntary surrenders whenever possible. You may want to write a letter to Wells Fargo Finance advising them that you are unable to pay for the vehicle any longer and that you would like to surrender it, asking for instructions on how to do so. If the lender fails to respond to your letter promptly, your next step may need to be more assertive. From a legal perspective, you should be able to surrender the vehicle at any W.F.F. branch, though you should probably take it to the branch where you took out the loan, if possible. If you take the loan paperwork and the keys, you should be to turn in the vehicle at the branch; they may not cooperate greatly, but if you persist, they really have no choice if you just leave the car in their parking lot and leave the keys. If the lender tries to come after you for a large deficiency balance, you may be able to workout a repayment plan, or even include the debt in a bankruptcy filing if you find it necessary to go down that road. If you continue to have problems with W.F.F, you may want to consult with an attorney in your area for further advice.

Hi Bill-I have to add a few more challenges to the above questions. I have been waiting(tirelessly)for my SSI claim to go to a hearing. I am in financial ruin and may have to turn my car into the bank. I won't be able to pay any balance on the loan after the bank sells my car. What should I do?

You have a couple of options, but they will most likely involve you losing your car. You could certainly talk to a banruptcy attorney, if you have other debts dragging you down... or if it is only your car payments then you can continue to not make payments and wait for the auto to be repossessed or you can voluntarily turn it in and stop making payments. They will likely turn the deficiency balance over to collections and try to get you to pay the deficiency balance. If you don't have assets, their primary method of collection will be just to bother you with harassment since SSI income is typically not garnishable (but see an attorney to confirm). We just put up a new Debt - Do It Yourself portal that might be really helpful for you: Debt Do It Yourself Good luck Sherrie. Bills

Im married an my husbands car was repossesed tho I was not at all on his auto loan can they come after me to collect his debit?

They can only come after you if you live in a community property state (check here http://www.bills.com/collection-laws/) and if car was purchased after your marriage.

The answer to your question depends on the state in which you and your husband reside. If you live in a community property state, and the vehicle was for family use, it's possible for the creditor to collect from the spouse. If your state is not a community property state, then the creditor may not be able to collect from the spouse. Regardless of which state you live in, I strongly encourage you to speak to an attorney in your state about this matter. An hour's worth of an attorney's time isn't cheap, but it is not as expensive as guessing incorrectly whether to ignore (or not ignore) a creditor's collection attempts.

If a repo company cannot find me or my vehicle, what happens then?

Eventually, the loan will be written off of the books of the creditor. The creditor may choose to sue you in court, in which case they will send you a notice to appear in court at the last known address. If you do not appear for the court hearings, a default judgment can be passed against you. The judgment will be reported on your credit profile and will remain there until satisfied.

I have not worked since May 2008. I am waiting on a kidney transplant. I have just now been approved for my disability through Social Security. I am 2 months behind on my car payments and with the amount I am drawing I will never get caught up. If i do a voluntary repo how will the company collect on the deficency now that I am not working. My husband is the co-signer but he is not working enough to pay the payment because he is taking care of me.

I wish you a successful outcome on your medical issue. Your co-signer is liable for the car payments if you stop making them. If neither of you make the car payments, the creditor has the right to recover from both you and your co-signer. If the creditor determines it can recover 0% from you, then it will attempt to recover 100% from your co-signer. In most states, retirement and disability income may not be garnished. However, if your retirement or disability income is comingled in an account with funds from other sources, the entire amount can be levied. Therefore, it is important that your disability income is deposited into an account with funds from no other source (such as a gift, part-time job, or savings), and that you ask your bank or credit union to add a memo to that account that it contains only your disability or retirement income. To learn more about the collections process, read "Collections Agencies, Collections Laws and Your State's Statute of Limitations." See the Bills.com page "Collection Laws and Statute of Limitations" for state-specific collections information.

I was layed off for a few months and fell behind on my vehicle payments. Although I haven't received any paperwork from my finance company I have been in contact with them regularly. I started working again and my new job requires me to travel a lot. So I am driving the vehicle. Recently the finance company told me that they needed a payment immediately which I still couldn't afford or tthey were gonna put it out for repo. I told them I understood and I informed them where I was with my work. My brother is watching my kids for me and the repo guy showed up there numerous times threatening to get a warrant for my arrest and that it is a class c felony in tennessee and that I'm hindering a secured creditor. He said the finance company told him toget the warrant. The finance company told me that they couldn't do that but they could file a replevin.I'm not hiding the vehicle I'm just using it to get to work so I can pay them. Can they get a warrant? I even called the local sherriffs dept and they laughed and said its a civil matter not criminal unless someone gets assaulted and that I could hae the repo guy escorted off my property. The finance company told me that they didn't want to report it because it costs them money and it takes time. Can the repo guy get a warrant for my arrest. I don't owe him money and I've told the finance company where I am but theykeep sending someone to my home.

I think the chances of the repo man being a licensed attorney in Tennessee are pretty slim, so I think it is more likely the repo man is attempting to frighten your brother into disclosing the location of the vehicle instead of attempting to express Tennessee law accurately and completely. His frustration at not making a pick-up (and thus getting paid) may play into his interpretation of Tennessee law as well. No one has gone to jail for debt since the Civil War.

Thanks for your advice. However he said he was gonna get a warrant for hindering a secured creditor and I've seen many people on the montgomery county sherriffs website arrested for hindering a secured creditor. What have they been arrested for and can I be charged with that?

I am glad that you sent me a follow up message. I am not a Tennessee attorney, obviously, and in my earlier answer I was unaware of Tennessee code 39-14-116. I do not know whether the facts in your case are sufficient to rise to a charge of hindering a secured creditor. Accordingly, I urge you to consult with an attorney in Tennessee experienced in criminal law who will answer your questions.

I purchased a car a few days ago, My co-signer has just received a notice from the IRS that he has 10 days to pay them back, or he will be levied. Can they take my car?

If the co-signer's name is on the title, it is possible the IRS may put a lien on the vehicle, especially if the vehicle has a lot of resale value. You may want to suggest your co-signer read, "Information about IRS Debt and Tax Lien."

What if the car financed?

Ariel, I assumed that because you mentioned the other party was a co-signer that your vehicle was financed. The fact that the co-signer agreed to make the payments if you defaulted does not in and of itself create ownership of the vehicle. The key fact here is how the vehicle is titled -- in other words, whose names are on the title. If the co-signer's name is on the title, then he or she is considered an owner of the vehicle. If he or she is not, then it would be impossible for the IRS to put a lien on the vehicle.

I am considering retaining my f250 diesel back to Ford. It is a 2004 with a 6.0 engine. I have had nothing but trouble with the engine and it has been repaired many times. Recently the head gasket blew out and it will cost about $3000 to repair. No one will work on it except the dealer because the engine has such a bad reputation. Unfortunately I owe much more than it is worth. I should have returned it under the lemon law but it is too late now. This engine is notorious for its poor design and reliability. Can I force this back on Ford. What happens to my credit rating and my ability to buy another vehicle on credit

Consult with an attorney in your state who has experience in consumer law. You may or may not have passed the statutory limit under your state's lemon law, but since you did not mention your state of residence I cannot even hazard a guess if you have. Take all of your receipts and other repair records to your meeting with the attorney, and ask him or her what your rights are in your state.