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

“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?


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.

Bonus Video Answer

Please post your responses and follow-up messages to me on this in the comments section below.


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.

Do you have a question you'd like to ask me for free? Go ahead and click here.
Damon Day - Pro Debt Coach

Follow Me
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.
Steve Rhode
Follow Me
Latest posts by Steve Rhode (see all)
See also  I'm Facing a Voluntary Repossession of My Vehicle Because I Can't Make Ends Meet. - Tabitha

Leave a Comment