We Have Crappy Credit But Need to Stop The Car Getting Repoed. – Anna

“Dear Steve,

My husband and his father are cosigners on a car loan together which is in mine and my husband’s possession and we are the ones paying for it. Due to my father in laws illness he has filed for Chapter 7 bankruptcy, the lawyer has stated on the forms to remove my father-in-law’s interest on the car. I must include that we have not been paying on time each month (slow pay) but we do manage to pay for it prior to 30 days being overdue, but now that the bankruptcy is in motion, the financing company has filed a motion to repossess the car.

We used to have a 10 days grace period, but I guess now (due to the bankruptcy) you can’t be a day late and according to them we are 8 days late. I still need a car and I want to continue paying for it monthly. I was planning on trading once we pay off the loan as I need a 4 door car due to a baby (this one is 2 door) . The car loan has $9000 left on it, and the letter they sent my father-in-law states that the value of the car is about $7500.

What can I do to stop a repossession? I am willing to continue to pay for it. Both me and my husband’s credits are poor (loss of income in last couple of years caused this) should we just let them take the car? as we do need a 4 door car and deal with what they will come after us for the difference between what was owed and what they sold the car for.


Dear Anna,

The best thing you can do is to contact the lender directly and negotiate some solution that lets you keep the car. Now, bear in mind that they may not let you, but asking is going to be the only way to find out.

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It is possible that the bankruptcy by your father-in-law caused the contract to go into default and force the lender to take the car back. But that does not mean you can’t try to talk them into letting you take the payment over. If you can locate the original financing contract you can read the terms and conditions on the back and see what the agreement you entered into said would happen in a situation like this.

It’s just too bad that your credit is not all that good. That would have made this an easier solution.

If the car is repossessed the lender will sell it at auction and since your husband is a cosigner on the car loan and your father-in-law has gone bankrupt, the lender will probably come after you for the difference.

That will probably leave you deciding if bankruptcy isn’t right for you.


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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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