Civil Litigation on a car loan

[zddoodah]

OK. If you're going to stay in Japan permanently, then you likely have nothing to worry about other than losing the $4,600 you have in a U.S. bank account. If you move that money out of the U.S., then you probably have nothing to worry about.

Even if the CU sues you and gets a judgment, the likelihood that it will try and pursue recovery outside the U.S. is astronomically small.

Not cool to welch on a debt, but you can move on with your life (assuming a civil money judgment would not impact your ability to stay in Japan, which, again, you'd need to discuss with a Japanese immigration lawyer).

 

[Zigner]

So I chose to give the car that I was still making payments on and gave it back to the credit union that I was loaning it out from.

That's not something you can "choose" to do without repercussions. In other words, while you can do a voluntary repossession, that doesn't mean you don't owe the money.

 

[Redemptionman]

Yes and you could have sold the vehicle for enough money to cover the loan principle. Credit Unions are not Banks and they play by a different set of rules sometimes.

 

[Zigner]

Yes and you could have sold the vehicle for enough money to cover the loan principle.

That's pure speculation, as we have no knowledge of the remaining balance on the loan or the value of the vehicle at the time that the OP relinquished it.

 

[Redemptionman]

What about the OP's situation has given rise to a belief that bankruptcy might be a viable alternative?

The whole fact that he doesn't have 17k laying around and wants to see what options they have as in getting rid of any possible ramifications. They could also pay the money and not face those ramifications.

Bad business decisions are bad and have consequences.

 

[Zigner]

The whole fact that he doesn't have 17k laying around ...

More speculation.
(You may be right, but it's speculation at this point.)

 

[Deone]

More speculation.
(You may be right, but it's speculation at this point.)

No, he's right. I live from paycheck to paycheck.

 

[adjusterjack]

you could have sold the vehicle for enough money to cover the loan principle.

Car values depreciate faster than loan amortization and leave large balances, especially when people take out loans with little or no down payment and stretch it out for 5 to 7 years.

 

[Zigner]

No, he's right. I live from paycheck to paycheck.

Yes, I allowed for that

 

[Deone]

If I have to go to court while living here in Japan, because it is a civil matter will I need to hire a lawyer to represent. Will I be arrested if I don't show up for court?

 

[Redemptionman]

If I have to go to court while living here in Japan, because it is a civil matter will I need to hire a lawyer to represent. Will I be arrested if I don't show up for court?

You are over thinking it, you won't have to go to court in Japan. Even if they get a default judgement in the states, I am not sure what this does for you while you live in Japan. There is no attachment for it, just a default judgement which can be discharged from bankruptcy.

I understand why you did it as this happens quite a bit in other situations. Doesn't make it right but it is what it is. Used vehicle prices are higher than they ever have been so not having taken care of it before leaving the country is very irresponsible.

 

[Zigner]

Used vehicle prices are higher than they ever have been so not having taken care of it before leaving the country is very irresponsible.

This happened ~two years ago. The cost for used cars now is irrelevant.

 

[zddoodah]

If I have to go to court while living here in Japan, because it is a civil matter will I need to hire a lawyer to represent. Will I be arrested if I don't show up for court?

No one here knows anything about Japanese court proceedings.

As I indicated previously, if you remain in Japan permanently, the likelihood that anything will come of this is infinitesimally small.