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Should My Daughter Let the Title Loan Company Repo Her Car?

Written by Steve Rhode


Dear Steve,

My daughter has a car that is worth about $1,500 and a local finance company loaned her more than it is worth, and now the loan payoff is over $9,000. The car is about to fall apart and needs repairs in excess of $3,000 to keep running.

Should she let the company repo her car, knowing this will damage her credit?



Dear Janet,

At some point, the financial hole becomes so deep that she may never be able to dig her way out. Chances are she is struggling with some others debts as well.

If she allows the car to be repossessed they will sell the car for a small amount and go after her for the remaining balance due.

It may just be better to let them repossess the car and file a Chapter 7 bankruptcy to get a fresh start. While $9,000 is not a huge amount of debt, it is very large to someone who can’t afford much.

Following the bankruptcy, she could save some money, buy a basic car, rebuild her credit, and get a fresh start to do better moving forward.

You can find a good local bankruptcy attorney and have a free discussion about what bankruptcy would mean for you. Bankruptcy is the fastest way to get a fresh start for the least amount of money.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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