How to keep the car when an auto loan is charged off

Joined: 11 May 2009 Posts: 234 6581 Magic Points

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.

Joined: 28 Jun 2006 Posts: 446 10878 Magic Points

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.

Joined: 03 Jun 2009 Posts: 2 194 Magic Points

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.

Jesse · Guest 0 Magic Points

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 ?

SamJackson · Guest 0 Magic Points

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?

Joined: 10 Oct 2009 Posts: 594 99 Magic Points

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.

fishback · Guest 0 Magic Points

can i get a loan to pay the settlement they offered, can they still repo it? will i be in trouble?

StephanieV · Guest 0 Magic Points

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?

Joined: 10 Oct 2009 Posts: 594 99 Magic Points

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.

christy · Guest 0 Magic Points

so say i want to file bankruptcy chapter 7 and dont include the car then what will happen ..

Joined: 10 Oct 2009 Posts: 594 99 Magic Points

if you keep the car then you have to continue making the payments. If not then they can repo the car.

QUINN · Guest 0 Magic Points

i just miss my first payment cause i just got a new car cant pay for the other car what should i do with it still o 6500???

Joined: 10 Oct 2009 Posts: 594 99 Magic Points

you could try selling it. Some car dealerships will buy the car back from you check with them. Some will take them back if you have lost your job or something that can not be helped. Give them a call.

Monica65 · Guest 0 Magic Points

I financed a car that was sold in a lein sale. I still have a balance. How will this effect m credit and do I have to continue to repay the loan?

1, 2, 3, 4, 5, 6 Next
Page 1 of 6