Best Answer

The Lender may or may not want to repo a wreck. Bankruptcy, same deal. Call the lender, tell them what the car looks like, and let them decide.


File bankruptcy if you are buried in unsecured debt, not to save the car. Especially a wrecked car.


"Repossession" looks slightly better (not MUCH better) on a credit report than a Chapter 7. Let it get repossessed.

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โˆ™ 2016-03-17 15:24:01
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Q: Should you let your car get repossessed or file bankruptcy or what if you wrecked your car with no insurance and you are 3 months behind on payments?
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Related questions

Will insurance pay for a repossessed car?

Of course not! It wasn't stolen or wrecked, it was taken from you for failure to pay on the loan!Be sure to cancel the insurance.

Can a person in the military who is not on overseas duty be sued for the repossession of a wrecked vehicle?

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What if the car repossessed got in a wreck?

If you buy a car, lend it to a friend and it get wrecked then you have to get it reposessed with a bk. What can the creditor do if the car is wrecked? Even after the bk can you be charged for missing or broken parts?

If a car was wrecked just before it was to be repossessed is it legal to collect the insurance claim and then turn the vehicle over to the bank?

You can collect it if you want, because the lienholder is going to charge you for not having insurance for as many months as they can, and the amount of what it will cost to get the vehicle repaired. I say give them the check, you will owe less.

Can your car be repossessed from the towing lot that towes your wrecked vehicle?

If there's a lienholder on that vehicle, yes, that lienholder can repossess it.

Can a person let a wrecked truck get repossessed without any monetary issues?

That would be a particularly bad plan if you hope to keep a good credit score. The bank would have required you to have enough insurance on the vehicle to cover the replacement. If you didn't, you are financially responsible for every dime that is outstanding on the loan. If the truck is wrecked, the difference between the debt and the value is your responsibility.

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Then they will repossess the wrecked vehicle, sell it for what they can get, apply that to the loan balance, and you will be responsible for the balance on the loan. They will sue you in court to get it and will win. Now if you continue to make the loan payments, then none of this will happen. Did you not have insurance on this vehicle?

What if you return a wrecked car back to the carlot its up for repo can you go to jail?

No, debtors prison no longer exists(With this economy thank God) so unless you wrecked it purposely your good there. However if you had a loan on the car, you should of had full coverage insurance that would pay for at least most of it and most dealers require gap as well which would continue paying the car off after the insurance. If you did not have insurance and gap, then you will be responsible for the cost of the car, even if it is ropo'd. You can file bankruptcy if you cannot afford to pay for the car however, if your not paying for just because you wrecked it that isn't really fair to the lender. They can also Levy your paychecks and or bank accounts for the funds to cover the car.

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