I have a car loan currently in default assigned for repossession. The car loan company will not work with me and I understand they really don't have to. The problem I have is my mother in law cosigned and I don't want it to affect her! Is there anything I can do to keep that from happening? I am currently hiding the vehicle so they can't find it. They just resorted to sending a private investigator to my mother in laws house to say that I refuse to talk to them and that I told the lender to go after her.
While it is admirable that you are hoping to protect your mother in law, hiding the car is unlikely to help because she will still owe money on the loan whether you have the car or not. An important question is whether you owe more than the car is worth (or more than the car will get at auction). If the answer is no, you (and your mother in law) are likely to owe money even after the car is repossessed. If so, I would recommend that you make arrangements to return the car and settle the debt, and speak to you mother in law directly to let her know that you are working on it. See if you can negotiate to reduce the fees and any remaining balance by returning the car promptly. Bankruptcy might be another option you want to look into if you want to keep the car and the loan is far more than the car is worth. Good luck!
Sure would have helped if you had indicated whether you will be capable of catching up on the past due car payments or not. Bankruptcy can provide some options, but it isn't going to let you postpone this problem forever. Hope this perspective helps!
The mere fact that you are behind on payments is hurting her credit. I would start by discussing it with her. If they get the car back, they will sell it for about half what it's worth, but if there's another person who might buy the car, even your mother in law, that's a way to avoid losing so much money. If you just need short term help getting caught up on a few payments, try using a credit card cash advance or other short term loan. If you just can't afford the car, maybe it's time to give it back to at least reduce the total amount of debt. They will still want the same monthly payment, but might be more willing to work with you.
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To really protect your mother in law, you need to try to get the payments current and right away. IF, the car is repossessed, it will likely be sold at a loss at auction and they will pursue you and your mother in law for the difference. Yes, bankruptcy can discharge your personally liability, but they will then look to her. You may be able to buy some time to get the car paid up by filing a bankruptcy, as the automatic stay will prevent the repo while the bankruptcy case is pending. Much depends on the ability of the creditor to work with you. For now, focus on doing whatever it takes to bring the loan current again. Best regards.
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