Repossession

Report the car as stolen (assuming it is still in your name). You can even tell the police where the car is, most likely. Regardless of who's making payments - the name on the title is the owner of the car. You may wish to get some professional legal advice because this could get ugly.

If your name is the borrower name and someone else is making payments and they suddenly stop; then the car will eventually get repoed and it will show on your credit report.

A creditor must take a consumer to court in order to begin the legal process to garnish wages. The exact procedure for this process depends upon state laws. Most statutes require the plaintiff in a court case to make a reasonable effort to contact the defendant. This can entail sending a written notice to a last known address. Thus, it is possible to have a default judgment granted against you without your knowledge.

That would be at the discretion of the lender(s). If an agreement is made and all terms are lived up to, the lender probably will not report the default to CRA's.

Examples of computation methods include the following:

The most common credit card balance calculation method credits your account from the day payment is received by the issuer. To figure the balance due, the issuer totals the beginning balance for each day in the billing period and subtracts any credits made to your account that day. While new purchases may or may not be added, depending on your plan, cash advances typically are included. The resulting daily balances are added for the billing cycle. The total is then divided by the number of days in the billing period to get the "average daily balance."

Usually the most advantageous method for card holders, the balance is determined by subtracting payments or credits received during the current billing period from the amount left at the end of the previous billing period. Purchases made during the billing period aren't included.

Using this method, the cardholder has until the end of the billing cycle to pay a portion of your balance to avoid the interest charges on that amount. Some creditors exclude prior, unpaid finance charges from the previous balance.

The previous balance is the amount you owed at the end of the previous billing period. Payments, credits and new purchases during the current billing period are not included. Some creditors also exclude unpaid finance charges.

Issuers sometimes use various methods to calculate your credit card balance that make use of your last two month's account activity. Read your agreement carefully to find out if your issuer uses this approach and, if so, what specific two-cycle method is used.

If you don't understand how your finance charge is calculated, ask your card issuer. An explanation must also appear on your billing statements.

They can refuse any payment offer that is different than the amount specified in the contract. And don't think of the statement that they will garnish 30% of your wages as a threat. It's a warning, but they will need to sue you and get a court order to do it.

The only way is if you signed an agreement to be responsible for the card. The card agreement was first signed by an officer of the company and then added you as a authorized user. But they can't hold you responsible for any of the debt unless fraud is envolved and then you don't need to worry about the card company you will have much bigger problems.

Yes. They can get a writ of judgment and enforce it in the form of wage garnishment. In civil court when a defendent does not answer a summons the plaintiff wins the case by default. Sometimes an appeal can be filed if there is a justifiable reason the defendent could not appear at the hearing.

That would depend on the SOL of state the where the person resides. And the laws of that state that pertain to secured property loans.

Most likely.

If you file before the vehicle is sold, the Automatic Stay that gets imposed stops the sale. You can then go back and work on how to pay the arrears. If its a Chapter 13, then they are simply in the plan.

If the car has already been repoed, then make sure you call the bank (or whomever you got the loan through) and tell them you filed. Give them the case # and the chapter.

No, because the co-signor is not file a bankruptcy with you and the creditor will go after the co-signor instead of you.

The most common type of bankruptcy is a Chapter 7, commonly called a 'straight bankruptcy'. You may be allowed to keep a vehicle up to a certain value and reaffirm the loan after the bankruptcy is discharged with the bank to continue payments.

A repo, voluntary or not, will torpedo your credit score (by up to 150 points, at worst) and that damage will weigh heavily for at least 4-5 years before falling off completley in 7 years.

Even after a repo, you are legally responsible for any balance after the bank sells the car at auction. The bank can, and often will, seek a garnishment on your wages to recover this balance. The greater the balance, the more likely they will pursue collection activity. Balances under $2000 are hardly worth the effort to sue you, but some banks do.

You would still need to file Bankruptcy and declare this balance as an outstanding debt. That would wipe out your obligation to repay this amount and prohibit any further activity against you. This will be another major slam on your credit score and the Bankruptcy record will be there for 10 years.

If the car debt is the only reason you would file Bankruptcy, you should hold off until you have no other alternatives. Obviously, if you are talking about repossession, the car payment is more than your budget can handle now- correct? Do you know how much is owed on the car (payoff balance) and if you could possibly sell or trade it in for close to that payoff or more? If so, you need to SELL the car let it get repo'd!

If the loan balance is more than the car is worth (upside-down), then a repo may be the only recourse to get out from under that monthly payment. A VOLUNTARY SURRENDER is always a better idea than allowing the car to be picked up at random by a repo company! It saves the bank from paying the repo company to locate, retrieve, store and deilver the car to them. It also eliminates the chance of any damage during the repo process or while being stored at a repo facility. You would be held responsible for it in the condition it arrives back to the lender. If you deliver it yourself, you can snap a few photos for posterity. Clean out all your belongings, run it thru a car wash and vacuum the interior before handing over the keys. It will make you look like a very mature, responsible and respectful adult even though it will be difficult. It would be easier to just let it disappear one day and not have to face the lender and hand them the keys- probably an embarrassing thing for most of us. But so few people handle it this way that it can only cast you in the best possible light.

I was told a voluntary car repo is worse, because that will be on your credit report as repo. With bankruptcy (Chapter 13) you are making payments.

In terms of credit score, I can answer half of that question. I was at a bankruptcy conference in Indianapolis last year where the speaker had worked for a major credit reporting agency for 20+ years, and he said that bankruptcy normally reduces your credit score by 75 to 150 points. I don't know how much a repo reduces your credit score, but if you can find out, you know what to compare it to. The guy said the credit reporting companies are hush hush about how your credit score is determined, so no credit reporting agency will give you a clear answer to that question, but loan officers might have an idea of what the repo would do to your score based on what they've seen it do to other peoples' scores. In terms of duration, a repo is on your credit report for 7 years, whereas a Chapter 7 bankruptcy is on your credit report for 10 years. A Chapter 13 bankruptcy is on your credit report for 7 years (same as a repo). Also, I'm not sure if credit reporting agencies even distinguish between a voluntary and involuntary repo. Please note that nothing in this posting or in any other posting constitutes legal advice; this is simply my understanding of the facts, which I do not warrant, and I am not suggesting any course of action or inaction to any person.

A debt consolidation lawyer once said you can dispute a bankruptcy or a repossession with the credit bureaus, they have 30 days to verify, if not it must be removed. The best time for disputing these things is around Christmas or other holiday "busy" seasons. "The employees that do verifications for the CRA's are required to do 10 verifications per hour (quota), however they are only paid approx. $7/hr." (Quote taken from a report from a lawyer's research posted at the credit info center.

In the case of a home, it will be sold at Sheriff sale on its own. (or the Trustee may sell it)

In the case of any other property, the Trustee must abandon the property, then the Creditor will contact you (or your attorney if you have one) to arrange to get the item.

If its a car, or some other type of personal property, you can sometimes accellerate the process by calling the creditor's attorney. (Or the creditor if they don't have one)

Ask the Trustee at your 341 hearing (meeting of the creditors) what he/she thinks. They may abandon it right there.

You need your Bankruptcy Chapter 7 to be discharged first before getting a loan to buy a house. Most lenders require two to four years of re-established credit before they will consider making you a loan. However, many lending sources are competing today to make loans to borrowers with less-than-perfect credit even if you have had your Chpter 7 discharged less than two years ago. You may need to put down a sizable down payment,and have sufficient income to qualify howevevr. there are some mortgage lenders that will allow one day out of bankruptcy with 100% financing

If you are making regular payments and have not had any problems, it is unlikely they would do much of anything. Depending on your own financial history however, they could, if it is in the lending contract, require another co-signer. Your best alternative IMO, is to be honest with the creditor and explore the options.

You can file for a Chap 13 to be "dissolved". Although it is probably too late for that in your case, as you are already in default. Not knowing the exemptions allowed in your state, it is difficult to say what will happen to your house. You need to consult with a BK attorney ASAP. Preferably the one who handled the original filing. I don't understand why you did not file another 13, or ask that the original one be modified. Just double up on your payments till you get caught up, Or contact your attorny.

Your obviously a person who cares more about some car than your credit. Bad logic leads to bad choices and a cycle of financial problems throughout your life. Shame

In BK the debtor is allowed a set of exemptions. Each state has statutes regarding what is exempt and to what extent (amount). They are different by state and/or federal law. The debtor/consumer should find out what the exemption laws of his/her state of residence are before filing. And if they can choose between state, federal or a combination. The BK attorney should supply you with this information. If a person is handling their own BK, they can obtain the needed forms/info. from the Federal or state, court clerk's office. Depending on the choice(s) of how to file. Another option is online, forms/filing. Always use caution when using the internet and/or "do it yourself" transactions of any kind.

Yes. It is usually the only other option for a borrower. If not the creditor might seek legal recourse in the form of a lawsuit. Even though the idea of a lawsuit is "scary" it can be a better choice than BK, depending on circumstances of the borrower.

Any money you inherit prior to a bankruptcy being discharged would have to be revealed to the judge and trustee assigned. These newly acquired assets would be factored into your financial picture and may be captured in whole or part to pay your creditors. It is possible that a sizable inheritance would cause your bankruptcy petition to be "thrown out". Consult with a competent attorney to learn the exact implications in your case and state.

If payments are current and there has been no breach of the loan contract the car cannot legally be repossesed. It is highly unlikely that any lender would want to initiate such proceedings if they are getting paid in a timely fashion. Repo is the last thing a lender wants to do.

Even though bankruptcy is filed in federal court; asset exemptions are determined by state law. You would need to pose this question to an attorney familiar with (your states') bankruptcy laws.

Its done every day of the year.

No. Even if the dealership would let you,(never happen)it is still your responsibility. Apparently the lender feels they can collect the debt by other means. Secured lenders have the option of negotiation or collection of the debt in full. Bankruptcy does not relieve you of secured debt, unless it is agreed upon by the lender.

You car being repoed has nothing to do with bankruptcy. You can file anytime.

If you are filing though, make sure you keep track of the value of the vehicle v. the exemption in your state for cars. You may end up having to pay the trustee more if you get an expensive car. IF you get a car that is 100% financed though, don't worry about it. (The bank would own it, not you)

No. The co-signer is no longer responsbile for any part of the loan. If you default, the creditor can not attempt to collect from them.

It would be simpler for all parties if you contact them and voluntarily surrendered the car at the lender's discretion. Although you do not legally have to reliquish any property until the BK is discharged.

How much time do you want to buy? The court will tell you what to do if you don't contact the lender.

The court will contact the lender after you file and ask what the lender wants...actually, where and when he will pick up his assets.

Usually a month.