I'm stuck in a rut because of a car repossession … any suggestions?
I was young, (22yrs old) had 2 jobs and made good money. I decided to trade in my old junk of a car and buy a brand new car. I had no credit history so my then bf helped co-sign for my new car. My interest was sky high but I didn’t care at the beginning because I had no idea what I was doing. I paid a very large amount per month and then after about a year, I lost my main job. A few months after that, I lost my other job. I now was collecting unemployment and went through HELL to make sure that car was paid off every month. I started making late payments and my life was just a mess because not only did I have to pay for that car, I had the insurance, rent, etc. I was no longer able to pay my car and that day came when Mr. repo came knocking on the door. They took my car after 2 years of me working my butt off and they auctioned it off for SO cheap (almost had a heart attack at how much they sold it for!)
This was in 2008 and 2 years later, I’m still struggling financially in more ways than a hundred lol…I have really bad credit, I can’t even open a bank account and I feel like my once so organized and amazing life is now totally off track. I don’t know what to do. These are my questions:
1. If I open a bank account, can my lender seize all my money? Not a savings, a checking account.
2. Being that I did not pay the upside down on the car (,000) should I file for bankruptcy and is it too late to do that after 2 years? And for those who want to suggest that I pay off the 16 grand, I’m not because I’m not going to pay for a car I don’t have anymore and you might say well you’re stuck with it you should have never bought a car you can’t afford I don’t want to hear it because you don’t know my story. I want serious answers, not answers that are going to sound mean and not help.
If there is anything that I’m missing? Please, any advise would be GREATLY appreciated. Thanks in advance 
I agree entirely that none of us should be taking a holier-than-thou approach to difficult situations like this. I know what you mean, that there are a lot of people out there who will say things like:
1) you don’t understand. paying the loan isn’t "paying for the car that you don’t have anymore". The car was paid for, by the lender. The lender has nothing to do with the car, he just gave you money.
2) how can our society / economy function if people think they can walk away from their debt?
I agree that those points are irrelevant and mean-spirited. However, I think your only choice is to approach the lender for a payment plan. Bankruptcy will not be a good answer. You get rid of $16k of debt, big deal. You ruin your life in many other ways. Please, please please , i recognize how difficult it has been for you. But you have to stick with it. It will be worth it in the long run.
Good luck.
May 30th, 2010 at 9:35 am1. They can seize your account or garnish your wages if they sue you, have a judgment against you, or they can do like they did me when I ignore lenders for 5 years; claim it as income on your taxes (cancelled debt) You signed a contract that you going to pay that debt so now you have to pay the difference, don’t matter if you don’t have the car anymore.
May 30th, 2010 at 9:35 am2. If you file bankruptcy, it’s worst than bad credit and will be on your report for 7-10 years.. You definitely won’t get any credit for at 3 years after filing. If you have the money to file bankruptcy, you have the money to do a payment plan for the car. Not trying to be mean, Just being realistic cause Ibeen there in this situation….