5 replies to this topic

[chgolatin2]

Just like most Americans in todays world. I'm facing a financial issue and I"m not sure as to what to do or direction to take so here it goes. I'm in debt, really big dept and I was thinking of giving my car, motorcycle and boat back to the banks instead of doing a BK Chapter 7 and really messing up my credit which is still in excellent shape besides being in debt

So what looks worst "BK or "Voluntary repossession?" Has anybody experience this???? Please share you knowledge.

Thanks

[mugzy]

Im sorry to here that chgolatin2. I can tell you that you should probably avoid allowing your vehicle to go into voluntary repossession if you can do anything to avoid it. The primary problem with repossession is that you will likely be left owing a deficiency balance on your loan, meaning that you may still owe a significant amount of money to the lender even though you no longer have the vehicle. When a vehicle is repossessed, the lender usually sells the car at auction, and applies the amount it receives at auction to the balance you owe on the loan; the borrower is generally responsible for any amount of the loan which is not covered by the auction proceeds. The problem is that lenders usually sell repossessed vehicles for significantly less than the cars are actually worth, which can leave a borrower owing thousands of dollars for a vehicle the borrower no longer even owns.

At least with BK you are cleared of owing any more money and can begin new.

Either one will put a damper on your credit for a few years. Good luck

[Ms.Wetback]

BK and start fresh.

In 3-5 years a BK or foreclosure will be the normal on approximately 37%+ of ALL Americans !

[chgolatin2]

Wow, hmmm.. Tough decisions to make, I will study my options and see what happens I'm sure theirs a solution. Thanks guys! Probably BK will be the only option at this point since I am overwhelmed w bills and it sucks not to have a savings to fall back into in case of emergencies.

But atleast I'm not the only one in this situation, I'm sure some are worst than me, sadly to say...

[dex]

selling everything yourself

[Kosher Fried]

if you're lucky enough get a ch 7 bk you'll be set within 2-4 years...voluntary repo is STILL a repo as far as credit is concerned, it will follow you for 7 years, and will hit your credit score (at least) harder than a Bk...however, if you make enough income, you probably will likely get a ch 13 bk, where you have to pay some of it back..generally over 4 year time period...then you'll be clear 2-4 years after clearing

...after discharge, bks stay with you for 10 years...collections 7...judgments and liens forever or until they're paid