Auto Financing

by Sandra
(Hazel Crest, Il)

I bought a 2002 Ford Explorer in 2001 when they first came out. I was working then. The trouble started when I bought my first home and got behind in my mortgage. I had to then file bankruptcy (chapter 13). My job started downsizing as I was having my car payment taken via payroll deduction and the attorney advised me that I would have to put it in the chptr. 13 and I did. But after I retired due to downsizing my bankruptcy was too much for me to keep up the payments. I re-filed and tried to get them lowered. I was once again in a bind and had to let the bankruptcy be dismissed. I was under the impression that the vehicle payments were being made and then I found out that the plan was not paying the finance company but the finance company told me that they were going to let me get into a payment plan on a loan that is now 10 years old. I don't know how much the bankruptcy has paid into the finance company and now I am trying to make the payments but am having a hard time. I am on a fixed income and cannot seem to find a job, and I think they are saying that I owe more than I do on the auto. Is it some way that I can have the finance company re-finance my loan or what should do with a 10 year old loan that should have been paid off. I need help badly. I have now resorted to getting payday loans because my credit is bad due to the bankruptcy.

Comments for Auto Financing

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Jan 18, 2011
Bankruptcy and Auto Loan
by: Debt Collection Answers

So sorry for all of your problems. However, your situation is very complicated and I am not equipped to give you a solution to your problem.

My best advice is for you to schedule another appointment with your bankruptcy attorney to find out if he/she can help you get the information you need and help you assess what your options are in regard to your vehicle. It may be that your best option is to give up your vehicle given that you are struggling to make the payments and it sounds like you are probably at risk for having it repossessed, which would only further damage your credit history. Furthermore, you are digging yourself into a dangerously deep hole by resorting to getting payday loans to keep going. I urge you to get legal help now!

Please share what happens with your situation in the comments section for this question. We are very interested in hearing how this turns out for you, and your experience can help others who are struggling with debt collectors.

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