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RobertJDFL, Attorney
Category: Legal
Satisfied Customers: 13748
Experience:  Experienced in multiple areas of the law.
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I am currently in deficiency on my auto loan by the amount

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I am currently in deficiency on my auto loan by the amount of around $2100 due to a job layover that lasted 5 months. I now have my stable job once again, but the bank is stating that they either want the car or the full amount of the car right NOW, which just isnt possible. I asked them if there was a way we could negotiate catching up on payments while staying within my budget (regular payments being $286.19/m), and they said no. In what words or phrases could I negotiate with them to make them say yes to my proposal? I really want to keep this car and keep paying on it, I just can't come up with all of the money at once. How can I convince them that allowing me to make double payments a month or just larger payments than my normal would be to both our advantages instead of repossessing my car?
Unfortunately, the hard truth is that there are not any magic words you can use to convince a lender to accept a payment plan if they aren't willing to negotiate. The lender doesn't have much to lose here -they'll take back your car, then go after you for a deficiency judgment if the car sells for less then what you owe, plus charge you any fees and costs .
Your contract likely allows them to demand full payment for the vehicle or the car once you missed making a payment.
Customer: replied 7 years ago.
Is there anything I can do or sign beisdes bankruptcy to be un-liable for the amount of the deficiency if I voluntarily repo?
Regrettably, no. But, you can also try to use bankruptcy for leverage to negotiate with the lender and see if that convinces them to work with you. In other words, if they know that you'll end up filing bankruptcy, wiping out their judgment and they won't get anything other than far less than what the car is actually worth at an auto auction, they may be willing to work out a payment plan.
Customer: replied 7 years ago.
Only a couple more questions and I promise I'll leave you alone lol. What chapter of bankruptcy would I file for this to happen and do they take the car away anyway? My parents went through bankruptcy years ago, and everything they owned was surrendered. In what chapter can you file bankruptcy to alleviate all of your debt and be free and clear? I know it affects your credit very badly for up to 10 years, but I don't know any other way to avoid paying unmentionable amounts of money if they don't accept a payment plan. I would like to be armed with the information I need in the case that they turn it into a trivial pursuit of knowledge to find out if I am bluffing.
A Chapter 7 bankruptcy would wipe out a judgment, if you qualify. Chapter 7 wipes out most of your debts, with some exceptions (it won't eliminate things like student loans, or child support obligations). You don't have to lose your car under a bankruptcy; rather, you can "reaffirm" the debt -basically, tell the creditor that you still intend to pay for the item. Chapter 13 is a "reorganization" plan -you enter into a payment plan to pay back your creditors, but typically only pay them a small fraction of what you owe.

It does affect your credit, but you can start repairing your credit as soon as you are discharged -and some debts drop off before the 10 year time. Also, given the economy and how many people are filing for bankruptcy, it doesn't carry the stigma that it once did. Plus, by the time you get to bankruptcy, your credit is pretty much in the toilet anyway -trust me, I've been there! If you're seriously thinking about bankruptcy, you need to consult with a bankruptcy attorney in your area who can sit down with your bills and answer your questions and tell you your options.

And no problem asking follow-up questions. Happy to answer them, I want you to be clear on the information.
Customer: replied 7 years ago.
Thank you so much, you've answered all my questions and then some! I appreciate your time and patience with me as well! Please have a great night/ day (wherever you are) and if I EVER have another list of questions, I will not hesitate to request you again. I hope it's okay to reccommend you as well, as I plan on it! Thanks so much, again!
Thanks very much! Feel free to recommend away, I'm online regularly, at least once a day for several hours at a time.

You can always request me in the future through my profile, or just start a question with "For RobertJDFL" in the title, and if I'm offline, I'll answer it the next time I sign on.

Good luck with everything, and I hope you have a good night!

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