You have a vehicle that you still owe on but you haven't made a payment in 2 years The finance sent several repo men after you but you out slicked them you are in the process of cleaning up my credit?

Answer 1

It all depends on your finance company. They could have a warrant issued against you for Grand Theft; and you certainly don't want that to happen. It's not worth keeping the car. You'll have a felony if you're convicted.

However, if you truly attempting to clean up your credit; and you have a company such consumer credit counseling they might be able to incorporate all your past due payments and future payments into one monthly bill along with your other creditors.

If you don't have the money to meet the monthly plan they've established you possible could be dropped from the program. You have to make current payments every month, simply because they have bargained with your creditor probably at lower monthly payment and interest rate.

Last, if you find that you simply can't balance bankruptcy is an option. However, if you plan to repay all your creditors back then you will need to file a chapter 13; but once again you have one monthly payment for all your creditors and you have to make your monthly payments or the trustee over your bankruptcy case will file a motion to dismiss the case; and you'll find yourself no longer protected by the bankruptcy court who issued what is called a "stay". This stay keeps anyone from taking your belongings without the courts permission. But you must make your monthly payments the court have instructed you to pay. Therefore, any past due payments you owe will be placed in your bankruptcy plan and your car payment at a much lower rate will be paid through the bankruptcy court. Next, you also are required to obtain and maintain full coverage auto insurance on the car, otherwise the trustee could request and possible be granted to release the stay on car; and then the finance company is free to repo the car. The finance company could also file a law suit against you; and the sheriff serve you; and if you lose the judge could order you to turn the car over that day, if warranted or the other side pushed to have it picked up.

However, if you file a chapter 7, you have a temporary stay on your car until the judges enters an order. Afterwards, you either have to turn the car in the creditor or work something out with the creditor. I would suggest to speak with someone who is authorize and who possible grant your request. Ask, can you put your past due payments at the end of your payoff and you begin making current monthly payments. The finance company might agree or disagree. Banks are more open to this. Once again they probably will require you have full coverage on the car. You really need to check the blue book to ensure the amount of coverage truly needed to at least cover the blue book value otherwise you could end up paying the difference if you don't have gap insurance.

Now, filing bankruptcy isn't always the answer; but if you have large amounts of debt, perhaps that's something you will need to discuss with an attorney. Afterall, a bankruptcy remains on your credit from what I hear between 7 to 10 years. However, companies will see that you've taken steps to correct several issues; and that you'll make better credit choices by limiting your spending or living above your means.

Just wanted to give my opinion.