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I Have a Repossession on My Credit Report. How Should I Deal With It? – John

Written by Steve Rhode

“Dear Steve,

Car was turned over for voluntary repossession in 2010 due to engine failure and inabilty to continue making payments on a car that would not run.

Not scheduled to come off credit report until 2017. Balance is approximately $8300 on the loan. Original loan amount was around $15,500 from 2006.

Should I attempt to settle this amount? Should I wait it out? What are the other options? What should I do if/when I settle it as far as credit reporting goes?

John”

car broken

Dear John,

The two issues are the old negative item and making sure you are still using credit to build a good credit score. The longer the time from when the repo happened, the less it will impact you.

If you settle the amount due the balance you didn’t pay will still appear as a bad debt for seven years from when it was first listed.

You’d have to know what your statute of limitations in your state is to determine how long they could sue you for the old debt.

If you are not currently working on rebuilding your credit, follow this guide.

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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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