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If my auto loan was written off can they still repo it?
Anonymous3 views3 answers
I have an auto loan for about $14000 and the car is currently only worth about $5000 ( I was ripped off badly) and on my credit report it says that the debt has been written off. The company has not tried to contact me in about two weeks. Can I settle on this loan? I am not willing to pay the full amount because it is way more than the car is worth. Should I get a lawyer to help me fight this. I need my car to get to work everyday. Should I be worried about it still getting repossessed?
I am sorry for the problems, but you are mistaking the significance of a write-down. A write-down is merely an accounting procedure and it does not mean your contract is now void or that the property is yours. You can guarantee they will try (and likely will) repo the car. They will then sue you for the balance.
You can try to settle, but they are free to refuse your proposal and go after the car. You can talk to a lawyer, but I don't think it would make that much of a difference. Good luck.
A charge off is not a debt forgiveness. The finance company can repossess and/or file suit on the note. How old is the note? if over 2 1/2 years a Chapter 13 can bifurcate the loan to its value. If you consider a Chapter 7 you may be able to redeem for value and there are companies that would finance such.
