Tabitha wrote to me through the GetOutOfDebt.org site and asked the following question. If you have a credit or debt question you’d like to ask just use the online form. I’m happy to help you totally for free.
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“Dear Steve,
Voluntary Repossession of Vehicle, Stll making payments and up to date but cannot aford full coverage insurance and payments plus payments on personal loan to fix vehicle that was a gift (cheaper to fix gift)
My credit is already crap and I really need to get out from under a vehicle that we are paying for and full coverage insurance, how do i go about doing this? I litteraly am having trouble paying for the necessities at this point and have daughters with health problems What can I do?
Tabitha”
The Answer:
Dear Tabitha,
The most expeditious thing to do is call the car lender and make arrangements to hand the car back. This will appear on your credit report. They will then sell the car at auction and send you a big bill for the difference between what it sold for at auction and the loan balance when you handed it back.
If you can’t pay the bill when you get it, go talk to a local bankruptcy attorney and discuss discharging the bill through bankruptcy.
I’m not saying any of this like it is simple or easy to deal with. But if the health of your daughter and your ability to keep yourself safe and feed is at issue, then this suggested plan makes logical sense.
