Bought a trailer 5 years ago. i can no longer keep up with payments. notified bank and they are scheduled to pick up next week. besides this affecting my credit score, can they attack any other vehicles i own for the balance due? how about my business account/personel account? so far im sure the payments i made have paid for this trailer , and the principle has barely been touched. thanks for your replys, im getting mixed messages, and im confused!!
Your creditor can repossess your vehicle without even going to the court, or serving you any notice, the moment you default on the payment. However, this depends on the contract made when the vehicle was bought and repossession rules of the state where you live in. If the creditor breaks any of the laws, he may lose his repossession rights and even may have to pay you for the damages made.
Thus, you need to check the repossession laws of your state. However, after selling the car, the bank may still come after you for the difference. So. it's better to sell the car yourself and then take a loan to pay for the difference.
This is going to be better than a repo, the credit report will show instead surrender.
What is going to happen is the bank is going to sell the trailer, and they will sell it dirt cheap, what ever is left over on the original balance you owed them. They will come back after you for the balance.
I found this link a while back and it may be of help to you, it talks more about what happens when you have a repo.
Your personal details (name, email address and phone number) will be delivered to the company advertised on the Creditmagic after ve agreed to go for the counseling session by filling out the no-obligation form. However, it is your discretion to accept or reject their services.
Not all the creditors/debt collectors agree to trim down the outstanding balances, interests, and fees payable by the consumer.
Consumers working with the debt relief companies can still be sued by the creditors/collection agencies.
Debt relief services may have a diminishing effect on the creditworthiness of the consumer. The total outstanding balance may increase as the additional fees get accrued.
The overall amount saved by the consumer through the debt relief services is considered as taxable income by the IRS.