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She looked into chap 13 but I dont think she needs to go that route. She had a huge boat payment which we were able to sell the boat this week and it paid that off. Now she has 2 huge car payments totalling $1500 month. loan amount is 80k for the 2 cars. Value is about 50k. She also has the credit card debt totalling about 15k.
If she were to just turn in her cars to the lender, do they come after her for the difference in the form of a judgement? Her credit is already destroyed so preserving her credit is not important.
We have decided that my mother in law cant keep up with her car payment and needs to get rid of the car, she is already 2 months behind on her car payments and will be 3 months soon. Should she first contact her lender who is Ford credit and tell them she cant make the payments any longer and to see if they will take the car in exchange for a waiver of the deficiency? Anything specific she should ask them? If they say that they will not do that, what would be her next step?
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