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MShore, Attorney
Category: Legal
Satisfied Customers: 25285
Experience:  Negotiate, Draft, and Review many complex commercial agreements each year.
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I do not think I have a leg to stand on, but I am desperate

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I do not think I have a leg to stand on, but I am desperate and praying for miracle. I live in NY. Last February I financed a car for my son. my credit was not grate and I was not employed full time. The interest rate is extremely high. The plan was for my son to work with a company servicing Access A Ride clients. He and his cousin were working on getting TLC license. Long story shot things did not work out as planned. Now I am stuck with a car I can't afford and worst yet I do not like. Are there any options open to me
Thank you for the post, I am happy to assist you by answering your questions. Do you have possession of the vehicle or does your son?
Customer: replied 3 years ago.

I have possession. I surrendered the plates.

Can you sell the vehicle?
Customer: replied 3 years ago.

I am not sure I know how to go about that. Further, I know it is worth much less than the bank note. The interest rate was extensive. If I sell the car and pay down the loan will the interest drop?

No, if you sell the car the bank would want the loan to be satisfied, otherwise it would turn into an unsecured loan. Does your soon have good credit now?
Customer: replied 3 years ago.

I do not think so

ok, what is the difference between what is owed and the current value of the vehicle?
Customer: replied 3 years ago.

20,318.35 - owed. The price was about 12,000. I doubt it was worth that. The care is a 2011 Toyota Camey

ok, what are your sources of income?
Customer: replied 3 years ago.

Currently I am unemployed. I was working part time ( I disclosed that to the dealer) when I signed for the car with the intention that the job would work out for my son and he will pay the note.

ok, do you own a home? If yes in what state is it located and what, if any, equity is in it? I am asking these questions because I am trying to determine what leverage you have to negotiate with them.
Customer: replied 3 years ago.

The home is my husbands. This is not an option. My son is from my first marriage. To be honest my husband has no idea I got myself in this situation. I know this is quite difficult

Thank you, XXXXX XXXXX asking because if the home is not considered your asset, it is exempt from this creditor's reach. I was asking of your assets to determine to what degree you may be considered judgment proof (i.e. lacking assets to satisfy a judgment and therefore the debt not worth pursuing as it would ultiamtely remain unsatisfied). Do you have any savings or other substantial assets?
Customer: replied 3 years ago.

Our car - that is my husband and mine is in our name. It is 2005 Hyundai

What is the market value of the car, minus any lien or loan?
Customer: replied 3 years ago.

no lien an no loan. Market value I am not sure. We purchased it about 5 years ago for around 12,000.

Thank you, XXXXX XXXXX it is unlikely an attactive asset for a creditor. Do you have any sizeable liquid assets (e.g. savings, stock)?
Customer: replied 3 years ago.

No, nothing

Thank you, XXXXX XXXXX are likely judgment proof (i.e. not an attractive target of suit for a creditor). Being judgment proof does give you a degree of leverage in negotiating a settlement or convincing a creditor not to pursue you and incur legal fees on a debt it cannot collect. Am I correct to understand that suit has not yet been filed? Also, do you have a good/excellent credit score that you want to preserve?
Customer: replied 3 years ago.

No there is not judgement. Payment is due on the 3rd. My son was making payments prior, but he lost that income and the job he was expecting did not come through. So no judgement. My credit is not poor...I would not say it is good enough to preserved although I would have preferred to build it as oppose to totally destroy it.

ok, you or your son should contact the lender to do a voluntary repossession. It will harm your credit, but not as much as a complete repossession would (where the lender has to hire a recovery agent to pursue the return of the vehicle). The lender would more likely than not pursue your son exclusively, especially after learning that you do not have the assets to satisfy a judgment. Please let me know if this does not answer your questions or if you have any follow up questions. If I have answered your questions, please positively rate my answers.
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