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What should I do if my car loan was just charged off?: A couple months ago I lost my job and fell behind on my car payment. I just got a new job making less money, but i budgeted my bills out to make it work. I was going to pay an extra 200 on my car payment to help my account get current, but I received a notification from Credit Karma today that there was a change to my credit report and i had a new delinquent account. It was my car loan. My account has been closed and the remark says "Charged off as bad debt, Profit and loss write off". I have no idea what this means as i've never had to deal with this before. I still have the vehicle, it's been at my address parked near the street since i've had my car loan. They haven't taken it, made no attempts to send me mail or phone calls. I don't know if its just because my loan is upside down, my loan is 14K but my car is only worth 4K according to KBB- or because of COVID and not repossessing yet. Any advice would be appreciated because i am lost and don't know what to do. I should also add that after this, my credit score went up 57 points, which to me is unusual.

Asked 1 day ago in Debt Collection

Robert’s answer: Let me start with what I know. People often HOPE that charge off means they don't owe the debt. It doesn't mean that. They can still take you to court; they can still keep hitting your credit; they can still repo the car, after court they can still garnish you.

(You didn't tell us what kind of car it was--usually if the car really is worth $4000, they will still want to repo it. Do they know where you are living now? If it's only worth maybe $1100 they often won't bother.)

What you should do next is a harder question.

You said that going from car loan late to car loan charge off HELPED your credit score. I'm guessing that means your score is pretty bad.

If this car is your only bad debt, maybe trying to work out a catch up agreement with the car finance people is still your best option. If you have a lot of debt problem, maybe it's time to talk to a bankruptcy lawyer.

People two years after bankruptcy are often able to get a car loan at around 7 or 8%; three years after bankruptcy 2 or 3%. I don't know enough to know if bankruptcy is something you should look at or not because I don't know enough about your situation.

Answered 1 day ago.


How long after your garnishment hearing will the creditor start back garnishing my wages?: i have a court date coming up Aug. 28th for a garnishment i have currently... and i need to know how long do i have after the 28th will i have to try to pay remaining balance off owed before they try to garnish me again?

Asked 2 days ago in Debt Collection

Robert’s answer: The "return date"on a Virginia garnishment is the stop date, not the start date. Your payroll or bank is supposed to send in money that they have been taking from you.

Since you haven't seen anything like that, maybe they hit the wrong payroll or the wrong bank.

Now maybe you are saying they have been taking money, that's why you say "remaining balance." In that case, you could go to court on that date; talk to the lawyer in the hall and tell him how soon you can get the rest of the money. It's up to them whether they want to work with you, or just walk down the hall and put a new garnishment on you.

Answered 2 days ago.


How do I guarantee payment, to old landlord, of back rent, when I become gainfully employed again?: Need to and agree to pay back rent. AMOUNT is the dispute. Condition is timing. Currently unemployed.....enough to pay current new temporary location rent and bills, but no extra to pay for back rent. New job pending. May need to move without relocation assistance for new job, so any extra money right now would go toward move. Don't want to file bankruptcy.
Past landlord would continue to apply any timely rent paid to interest, therefore never able to "catch up". According to him, now owe over $100k. Live in Maryland now.

Asked 6 days ago in Bankruptcy

Robert’s answer: Landlord says you owe $100K in back rent; and you do NOT want to file bankruptcy? If you don't need to, who would? Why do you think bankruptcy is in the law, if not to help you?

Answered 6 days ago.