Thread: need legal advice re:repossion

OK, so I am needing some help here. Here is the situation, back in 1999 we bought a used van for 8500 through a loan agency. we were to make 60 payments on it. months later, sept of 2001 we let get get trepossesed. We took it back, on our own becase it was a true lemon, we have had nothing but problems with it. well, the loan company supposudly auctioned it off for 1100 or 1200. My inlaws were a cosigner on this. Anyway, we had a fire feb 03, which forced us to claim bankrupsy for some reasion our homeowners insurance was never started (long story) my point, we ahd to keep paying on this loan becase his parents were the cosigners and we didnt want it to fall back on them, kwim? Well this past jan. we refinanced it and put it in our name only, this loan was STILL at 7500.00 I told jason I am not paying it, it is rediculous that we have been paying 191.00 a month for almost 6 years, and it hasnt even made a dent. Granted, we did refinance once and got an additional 1000.00 to make repairs on the van. Well, they have been threatening us to send it to the magistrates office for non payment. Well, today we got notice of a hearing (we didnt pick up the letter yet, but I am assuming that is waht it is for.)

We do not have much, my question is what can they take to pay off this debt, or what will happen to us? I am really going to try to fight this, I mean we have already paid back close to 8000.00 I am concerned. anyone kow where I could find some information about this, or something, DH is having a fit, and i too am worried, I know I should have just paid on this stinking thing, but I will in total be shelling out over 20000.00 fo something I dont even have anymore!

Thanks

They can take or put a lien on anything that you own that they deem of value.

You might want to call them and see if they will reduce the amount if you pay a lump sum, but it usually only 10% to 20% less than the owed amount.. better than nuttin.

Ugh!
Makes me glad I live in Texas. Here they can't do anything but put it on your credit. Maybe you could call a local attorney and have them bring you up to speed on what can be done in your state.

Originally Posted by HaveKids,LostMind

Ugh!
Makes me glad I live in Texas. Here they can't do anything but put it on your credit.

Dang I'm movin to Texas.

Seriously though.. that just dosen't sound right. Someone takes out a $20,000 loan and can't pay it back and all they do it put it on your credit history?

Originally Posted by buttrfli

They can take or put a lien on anything that you own that they deem of value.

You might want to call them and see if they will reduce the amount if you pay a lump sum, but it usually only 10% to 20% less than the owed amount.. better than nuttin.

See, in Texas we're a homestead state and they can't put a lien on your main home. Seriously, all they can do is put a judgement amount on your credit. They can't garnish your wages or anything either. And with these laws, when we want to settle a debt with a company, they will take MUCH less than the amount originally owned.

We were in the same situation with our brand new dodge ram quad cab. It honestly was a lemon since we bought it brand new and in the first year had the transmission rebuilt 5 times (no lie). We voluntarily let it get repossessed and after auctioning it off we owed $12k. The collection agency called a few weeks ago offering to settle for $3k.

I think it really depends on the state you are in and those laws.

Originally Posted by buttrfli

Seriously though.. that just dosen't sound right. Someone takes out a $20,000 loan and can't pay it back and all they do it put it on your credit history?

We had 13 credit cards maxed out and we defaulted on them, plus 2 cars repossessed. They cant do a single thing other than put it on your credit. Trust me, I'm living proof. It sucks because now my credit still isn't back to being perfect and I cant finance a new house like I wanted to, but just a couple more years and it all rolls off my credit. (After 7 years its off.)

Originally Posted by NINK

hmm, i don't understand why you would still owe on this if you gave it back to them..i understand you were paying it so it woulnd't fall onto the co-signer, but if it was voluntarily repoed than that should be the end of it....have you talked to the place about this, are you financed at one place and gave the van back to another place, like gave the van back to a car lot and financed at a bank? perhaps that is the problem, when you took the van back the carlot should have informed the bank...i had the bank voluntarily foreclose on my house since my insurance was denied when my home was detroyed by mold, i had no other choice. the bank sold it at public auction and that was that.

HI, no the place we took the car back to is the same place that financed the loan. We had a repo a long time ago and when they took that one back the debt was settled, thats why I dont understand this one at all. I am in PA...i have been trying to chek on the laws on yahoo, but i am not getting anywhere

Originally Posted by HaveKids,LostMind

We had 13 credit cards maxed out and we defaulted on them, plus 2 cars repossessed. They cant do a single thing other than put it on your credit. Trust me, I'm living proof. It sucks because now my credit still isn't back to being perfect and I cant finance a new house like I wanted to, but just a couple more years and it all rolls off my credit. (After 7 years its off.)

That nuts! If you default here, you pay and pay and pay until they say you are done.

Yeah, we've been debating whether or not to move back to Lousiana, where dh is from, but the second we get into that state, we'll be responsible for all of our debt and they can garnish our wages. So umm, we're staying put, at least for a few more years.

Originally Posted by disneymom

HI, no the place we took the car back to is the same place that financed the loan. We had a repo a long time ago and when they took that one back the debt was settled, thats why I dont understand this one at all. I am in PA...i have been trying to chek on the laws on yahoo, but i am not getting anywhere

Obviously the laws are different in every state (lol), but here's how it works in Oklahoma...

you buy a car for $20,000
get behind and/or give the car back to the dealership and you still owe $10,000

the dealership will sell/auction off the car
if they only get $1000 out of it, you are still responsible for the remaining $9,000

My best friend just went through this with her last car.. BIG mess.