Voluntary repo, bankruptcy, alternative...?

[Summerrayne21]

My boyfriend signed for his parents car because his credit was good and they agreed to make the payments on it. Also, he was told at the dealership that if they paid on time, the car and payments could be transferred to his name. They were supposed to pay $470 a month for six years on a car with a blue book value of only 11,000. They are not paying, and he lost his job in December and is unable to pay for it himself. He's concerned about doing whatever will be the least damaging to his credit. His parents are already one month behind in payments, and it's only a matter of time until the car is involuntarily repo'd. Is he better to file bankruptcy, have a voluntary repo and gradually try to pay the difference off, or is there some alternative that's a little better?

 

[FlaRiptide]

The best scenario is to sell the car. The difference between the loan pay-off and the cash received from the car sale could be put on a credit card, line of equity, or other short term loan. Are the parents willing to relinquish the car?

Also, your numbers do not make sense. Using a used car loan interest rate of 8.0% for a term of six years and at $470 per month, the purchase price would have been $26,806. Your blue book figure of $11,000 is'nt even close.