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justin.oscar
Joined: 03 Jun 2009
justinoscar's page
Posts: 2
73 Magic Points
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Subject: My auto loan was charged off and I have the car still, what
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Wed Jun 03, 2009 7:48 am
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I have fallen into a really bad spot with my finacial terms. My car loan has just been charged off on my account but I still have the car in my possession. The amount is $4000. They said I have 2 weeks to give them $850.00 to keep them from pursueing further action which I am assuming would be repossing.
With the charge off on my account, is there any real reason to give them this money? I am not sure if they can still come and take my car even if I give them this money.
Thanks for the help,
Justin |
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rachael
Joined: 11 May 2009
rachael's page
Posts: 244
6581 Magic Points
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Wed Jun 03, 2009 8:49 am
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Hi justin.oscar,
A charge-off does not mean that you will not have to pay down the debt. It means that your creditor has written your account as a loss for his company, because you have defaulted on loan payment for a continuous period of 6 months or more. It is likely that a collection agency is continuing with the collection practice for your account. They have given you only 2 weeks time, so you do not even have the time to ask for debt validation.
If you do not pay within the 2 weeks time period, the CA can take legal action against you. If they win the case, they can get an order from court to garnish your wages, to pay off the debt. I think you should pay the installment amount the CA has mentioned, after you come to a pay for deletion agreement with them. You will find a sample Pay for Deletion Letter in the Letters of Credit section.
If you do not pay off the debt, interest will keep accruing. It is also possible that the CA would add to it the amount involved in the legal proceedings.
_________________
Looking forward to a debt-free life. |
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scott
Joined: 28 Jun 2006
scott's page
Posts: 462
10934 Magic Points
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Wed Jun 03, 2009 9:13 am
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Hi justin.oscar,
Whether your car will be repossessed by your creditor/collection agency, depends on them. Even if your car is repossessed and sold off to pay the debt, you will still be liable to pay if any balances are remaining. You will also have to repay for any costs involved in the whole transaction.
I think the best option is to accept the payment offer that the creditor/CA has given to you. In that case you can retain your car and also avoid unnecessary legal complexities.
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SCOTT
Use your credit account responsibly and enjoy a debt free life. |
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justin.oscar
Joined: 03 Jun 2009
justinoscar's page
Posts: 2
73 Magic Points
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Subject: thanks
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Wed Jun 03, 2009 8:12 pm
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| Thanks for the replies guys. I just had another car repossed on myself within the same time period so I am finding it hard to get the money for this together at this moment. |
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Jesse
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Subject: charge off car
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Mon Jul 27, 2009 5:48 pm
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| I have a car that was charged off over three years ago. I was never contacted by anyone and noone ever tried to repo the car. This car is clunker does not run or work... what do I ? how can I get rid of the car ? |
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Sam Jackson
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Subject: chargr off repo of car
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Wed Oct 21, 2009 11:06 pm
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| My car was charged off and the repo people are trying to take it. I sent a payment to the creditor which is not the repo company.Will that payment be subtracted from the amount I owe? |
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debranewell2008
Joined: 10 Oct 2009
debranewell2008's page
Posts: 421
7253 Magic Points
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Wed Oct 21, 2009 11:22 pm
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| It should be. If you want you could send them a pay for delete letter to see if they are willing to remove the charge off from your credit report once you have paid the debt in full. No guarantees but it's worth a try. |
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fishback
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Subject: car
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Sat Oct 24, 2009 3:20 am
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| can i get a loan to pay the settlement they offered, can they still repo it? will i be in trouble? |
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Stephanie V
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Subject: Bankruptcy
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Wed Oct 28, 2009 6:44 pm
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| I recently moved, could not pay for my car that doesn't run, but the car lot has not repo'd the car. Instead, they sent the debt to collections. If I file for bankruptcy, will I be able to keep the car? or will the car lot come after it? |
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debranewell2008
Joined: 10 Oct 2009
debranewell2008's page
Posts: 421
7253 Magic Points
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Wed Oct 28, 2009 8:27 pm
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Hi Stephanie,
It all depends on the bankruptcy you file if you file chapter 7 and include the car they will come get it. If you file chapter 13 which is a repayment plan and you want to keep the car it is a secured debt so you will still have to pay them every penny you owe them through the plan. |
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