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Home > Ask The Get Out of Debt Experts > I Turned My Toyota Back In and Can’t Afford to Pay the Big Bill Due? – Alma

I Turned My Toyota Back In and Can’t Afford to Pay the Big Bill Due? – Alma

“Dear Steve,

I purchased a vehicle from Toyota back in 2011 I believe , we’ll I got a really screwed up deal, payments of 530 a month with a co-signer , 60,000 miles on it and it was used. 19% interested rate, we’ll I was able to make payments for a while until I got pregnant and couldn’t afford to make the payments anymore, so I called Toyota and did a voluntary repo.

I did try to refinance the car and I even asked family members to help but no one was able to, so I had no chose but to give it up.

We’ll it got auctioned off and now the balance I owe is 10,00 when I gave the car up I still owed about 20,000 and mind you I got the car for about 23,000.

I don’t know what to do because I honestly can’t afford to pay the remaining balance and I don’t want them to come after my garnishes because I’m only working part time. Please help? :(


Dear Alma,

When a vehicle is repossessed, even voluntarily, it is sold at a dealer auction. The difference between the loan amount and the sale price is the responsibility of the person who signed for the loan. In this case it is you and the co-signer.

No problemThe lender can sue you to recover this amount, get a judgment, and attempt to garnish your wages. A lot will impact if they can garnish your wages, including what state you live in and how much you make.

Outside of repaying the debt owed, the only other way to deal with the debt and avoid any potential garnishment would be with bankruptcy. In this case it sounds like you would qualify for a chapter 7 bankruptcy and the debt would be discharged in about 90 days.

Once the debt is discharged and you do not legally owe the debt anymore the lender can always go after the co-signer for the balance due.

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

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About Steve Rhode

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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