How do i deal with a car charge off?

Submitted by ca21rese on Mon, 11/24/2008 - 01:05
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2 years ago, I co-signed for a car for my ex. After I found evidence that she is an identity thief, she fled out of state with the car and stopped paying for it. She and the car are nowhere to be found. A week ago, I got a call from a collection agency trying to collect 36,000. Obviously, I didn't have that kind of money so they bargained down to 23,000. I told them I didn't have that money either. The account has been charged off since 2007. My friend told me not to pay it since it's not my fault and just let it be but at the same time it is since I am a cosinger. Two things I want to ask: 1. Since it's been charged off and can't pay what the collection agency is asking for, should I just wait for them to take me to court and let the judge decide my fate? and 2. Is it true that they can garnish my wages if they decide to take me to court? What should I do? Help

First of all never co-sign for anyone whom you think will ever take you for granted. Girlfriends, boyfreinds..I hear alot of this. I am thinking that you will be responsible since you are the co-signer. More than likely when they can not get her to pay they will come after you since they can find you. Garnishment varies by state and is definaltely an option for them..Is there ant way you can run the plates or anyhting to find the car and driver?

Mon, 11/24/2008 - 01:11 Permalink

The police are also after the car since she used someone else's money to buy it. There is no way retrieving it. I have reported it to the auto finance and even gave them a case number. I assumed after that they reported it to the credit bureau as a loss. I have learned my lesson since: trust NOBODY, especially with money matters.

Mon, 11/24/2008 - 01:16 Permalink

Since you have co-signed the loan agreement, you are also responsible for repaying back the debt. Now, since the account has already been charged off, it does not necessarily mean that you need not repay the debt. In fact you are still responsible for the debt and the creditor can sue you to the court and bring judgment against you to recover the debt. If they bring judgment against you they can even garnish your wages till the time the debt is repaid in full. However, they cannot garnish your full wage as per the Federal garnishment laws. It varies from state to state but for most states, the creditor can garnish maximum of 25% of your total wage and continue to do so every month till the debt is repaid in full.

Mon, 11/24/2008 - 05:35 Permalink

Yes, Anthony is right. If the creditor brings judgment against you they can garnish your wages. However, there are four states in US which does not permit wage garnishment. They are Texas, North Carolina, South Carolina and Pennsylvania. If you have signed the loan agreement in any of these states, your wage cannot be garnished. However, you can also come to a repayment agreement with your creditor and pay off the debt through a repayment plan. I think that it will help you.

Mon, 11/24/2008 - 05:46 Permalink

Since you do not have the money to repay back the debt as you say, you should not send any debt validation letter to the CA right now and wait for their action first. If they ask you to repay the debt before the SOL expiry in you state, you can ask them for a discount on the outstanding amount since the debt is not in your name alone. Moreover, if they send you a court summon, file a response to the summon and wait for the court date where you can defend yourself. Although you are also responsible for the debt, since you are a co-signer, you may not be required to pay the entire amount. However, Pennsylvania wage garnishment laws do not allow garnishment of wages to repay off the debt and so does state wage garnishment laws of Texas and N and S Carolina.

Tue, 11/25/2008 - 11:42 Permalink

Thats good to kow. I don't think the co-signer should be responsible for paying back an entire debt. I also think there are people out there that take co-signers for a free ride. It should be a rule that they have to take every known avenue to collect the debt from the first person before pursuing the co-signer.
So Mary, if yo send a debt validation letter that could cause them to seek action? That does make a lot of sense. They would see that you were interested in the bill and start the collection process. I usually tell everyone to wait for that especially if they are close to the SOL.

Tue, 11/25/2008 - 12:12 Permalink

I was really close to filing bankruptcy because of this mess. I agree with you Mary. I feel that I shouldn't pay the whole amount even if they gave me a 50% discount. The creditor wanted the whole amount or I have up to 12 months to pay the whole thing. I told them that deal is ridiculous. That's for the judge to decide.

Tue, 11/25/2008 - 14:22 Permalink

Yes, if you do not in a position to repay off the debt, you can wait for the creditor or the collection agency to sue you to the court. In the court, you can ask for debt validation and you will get another one month in hand. If you can arrange money within this period, you can pay off the debt and settle the case outside the court. However, if you cannot arrange money within the period, you should be present before the court and explain that you are not alone responsible for the debt as you are only a co-signer. The court may give judgment for 50% of the debt and may order for garnishment of you wages.

Mon, 12/01/2008 - 04:37 Permalink

You can always wait for the creditor to react first. Now if they bring judgment against you to garnish your wages, as per the Federal laws, they cannot garnish more than 25% of you wage. The remaining portion of your wage must be kept for your necessity consumptions. Moreover, as mentioned by carol earlier, they cannot garnish your wages if you stay in any of the four states as mentioned.

Mon, 12/01/2008 - 04:54 Permalink
Tracy (not verified)

After your wages have been garnished by an agency and they charge it off, can the same agency then turn around and garnish your wages again?

Thu, 12/04/2008 - 17:30 Permalink

Hi Tracy
Your wage can be garnished till the time the debt has been repaid in full. For garnishing your wages, the creditor needs to obtain a judgment against you and deposit a copy of the order with your employer every month, one week before you get the paycheck and the maximum amount that can be garnished is 25% of your wage. Now once it has been paid in full, they cannot garnish it again. But if your debt has not been repaid in full till date through garnishment, the creditor can garnish it again till the debt gets repaid in full.

Fri, 12/05/2008 - 11:40 Permalink

Yes, Anthony is right. Moreover if your account is charged off, it does not mean that you are no more required to pay off the debt. Even if your account is charged off, and the Statute of Limitation on the debt has not yet expired then the creditor or the collection agency can bring judgment against you to garnish your wages. However, there are 4 states where wage garnishment is not possible. They are PA, Texas and N and S Carolina.

Fri, 12/05/2008 - 12:06 Permalink

I think this is a big common misconception to people new to the credit collectios world. Most will think that since an account is actually charged off they are no longer responsible for paying back the money. In fact usuallly that is when the ruthless debt collectors get into the ball game is when the debt is actually sold off to one of them to collect.

Fri, 12/05/2008 - 17:18 Permalink
Kaori (not verified)

Yes, of course they can take you to court over this.What does that mean? Well, it means you need to go to court and try to work out a paneymt plan with them. Do NOT just not show up. That is the worst thing you can do.You can also try to settle this out of court.You can also demand that they validate the debt.You can do many things. Research this topic and the topic of credit repair. You do have rights and it will make it a lot easier on you if you know your rights!

Tue, 10/30/2012 - 05:19 Permalink
taken for ride (not verified)

I like many other fools co-signed for my daughter she did not let me know she was behind on her car until they picked it up. If the toyota charged off the debt can another collection agency pick up the debt and then garnish my wages? Do they have to send me judgement papers via mail first? before garnishment?

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Sat, 08/17/2019 - 20:22 Permalink
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Mon, 08/19/2019 - 11:56 Permalink
Andrewunalo (not verified)

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Mon, 08/19/2019 - 16:45 Permalink
spanishwomenfcs (not verified)

Grader's funny retelling of parents' Match

Second grader Sydney Huffman recounts how her parents met in this video entry for the MatchMade grant Contest. The entry with the most votes wins $50,000 in scholarship money for the child and a vacation to Fiji for the parents.

"My mom considered that my dad had a silly laugh. And my dad thought my mom had kind of a giant head,

It's not exactly the heady romance of the dating website commercial.

But Russ and Amber Huffman found their it's good to know ever after eventually, And now they hope their story can help their daughter win a scholarship.

questionnaire Huffman, their age 7, Is one of three nationwide finalists in the MatchMade fund Contest. If she victories, your girl will nab a $50,000 scholarship for herself and a trip to Fiji for her parents.

a small problem? Video synonyms were due in two days.

everyone Russ, amber, Sydney and 5 year old Daniel put together a short video single in spanish with the aid Russ's friend, Depicting Sydney using a chair and telling the story of how her parents met.

"We had fun telling our youngsters our story too, Because we haven't really said excitedly the whole tale about how we met, Said amber. Their result, She mentioned, Was pretty typical and involved a lot of to humiliated giggling.

"I didn't prefer kissing and hugging part, Said quarterly report, appearing grossed out. we were looking at shocked and excited. Sydney began making fliers to hand out to individuals, Asking them to prefer her video.

A wink and a contest

began to allow 2003, Russ was working in Huntsville when a friend started bugging him about joining an online dating service personals website.

"that is totally foreign to me, told me Russ. "he was quoted saying, 'I'm going to call you every day until it's.' and he did.

Amber was employed in Branson, Mo. For a relationship and family ministry. A friend told her about some positive experiences she was having with an uniform dating website, So Amber decided to check a few profiles. Russ completely caught her eye.

"He really was cute, bearing a bow tie, She agreed. "We read yet books. He said he was a Christian and that was important to me,

But his space just said "america" So she had little idea where he lived. She decided to register online for Match so she could contact him. "previously super sweet and I saved it,

A month went by servicing he didn't respond, Amber was about to discontinue but decided to send him a "wink" Via to the site. It was the push he used. He signed up as a paying member that day so he could respond.

"We talked five hours that night on i phone, Said ruby.

"And four another night, contributed Russ. He still didn't know what Amber appeared to be; She hadn't put up any photos online. Eventually, She sent him some via snail mail. (Russ: "btw, obtained 2003,)

A month or so later, He trafficed her in Branson. Their first date was go cart racing and an italian dinner. They prayed together and talked for hours.

three months later, Amber found a roomie and a summer job in Huntsville. They were engaged eight months there after and married on April 16, 2005.

Tue, 09/03/2019 - 01:13 Permalink
Jessica Grigori (not verified)

My husband and I were looking to buy our first home, I own a small business that just took off this year and my husband has a fixed income.
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Thu, 09/05/2019 - 19:11 Permalink
Rudy Cooper (not verified)

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Sun, 09/08/2019 - 15:48 Permalink
Tina Jackson (not verified)

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Mon, 09/09/2019 - 09:17 Permalink
Olivia Freeman (not verified)

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Wed, 09/11/2019 - 23:04 Permalink
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Thu, 10/31/2019 - 21:13 Permalink