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Barrister, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 37790
Experience:  Attorney,16 years experience in consumer protection areas
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Bought a new car after trade in the amount finance was $44,702.61.

Customer Question

Bought a new car after trade in the amount finance was $44,702.61. After 3 month could not make the monthly payments of $723, give car back. finance company sold car or collateral for 24,500, the finance company turned $17,886.26 over to a collection agency for collection. What can I do if I can't pay the $17,886.26 on my income? please advise.
Submitted: 2 years ago.
Category: Consumer Protection Law
Expert:  Barrister replied 2 years ago.
Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can.
If you aren't able to pay the amount owed, or settle the debt with them, then they will have to file suit under a breach of contract action and sue for a judgment.
If they get a judgment, then they can enforce it and try to collect with things like wage garnishments up to 25%, liening real estate, and seizing non retirement bank accounts to try to collect.
But if you have more debts than assets, then bankruptcy might be an option so as to discharge your obligation to pay this debt along with other qualifying debts.
If you tell the collection agency that you are considering filing BK if you can't settle the debt, that gives you leverage to negotiate with them because they know they will get nothing if you actually filed BK.