Well, my current situation goes like this…..I bought a used 2004 Chevrolet aveo and have had it for about 3 years. The recommended service for a timing belt change came at 60,000 miles. I had 63,000 miles on the car when it broke. the car is not covered under any warranty. my mechanic said it’s going to cost about $2,000 to fix. I still owe about $6,000 on the car that is only worth $2,500 when running. My mechanic has had the car for about a month because he cannot find part for it anywhere (The car was made by Daewoo for GM and Daewoo is now bankrupt) he has even tried the dealerships for parts and either they do not have them or the parts are on back-order for a long time. meanwhile, i have been walking the 2 miles every day to and from work and my fiance riding her bicycle, to top it off, my fiancee just got terminated from her job for a completely unjust reason, but that’s another story. so she is out of a job right now and is limited on where she can go to look for a job. no car dealership will take my car as a trade in because of the negative equity and the fact that the vehicle is not operating (bent valves in the engine). i just dont know what to do, one salesman actually suggested to me to buy a brand new car (we were qualified) and then turn around a do a voluntary reposession of my old car. would this be feasable in my situation? my credit isnt that great, but it isnt completely bad either. my credit score from trans union last time i checked was 690 but the other two reporting agencies gave me a score in the low 500’s. i cannot afford to have two car payments at this time and it doesnt look like i will be getting my car fixed anytime in the near future.
In my situation, would it be feasible to do a voluntary repossession and if so, when i get that large bill for the difference of what i owe v/s auction sale price, do they want that money in one lump sum? If i run the bill through bankruptcy, do I have to claim bankruptcy for everything in my life? or can i somehow just do it for that one bill?
I’m stuck in a rut here and do not know what to do. please help.
That sure seems like a difficult situation.
It is a shame that you might have to go bankrupt because you don’t have access to a couple of thousand dollars to fix the old car. I found several online Chevrolet Aveo parts suppliers and maybe this one, or others, has the needed part.
Handing the car back is going to result in a bill that will probably be $5,000 and you don’t have the cash for that. If you go bankrupt on that debt you will have to include all your others and that will make it hard to buy a car for a reasonable interest rate immediately after bankruptcy.
Maybe a better solution is to help your mechanic locate the part he needs using one of the online part suppliers. If you need cash to get the car fixed then consider making a loan request through LendingClub.com for a loan to get the car fixed.
P.S. Be sure to read ‘The Secret of Surviving Through Difficult Economic Times. What I Learned On My Journey‘.