Voluntary Repo

[joshjen111]

I am in a car loan owing 19000 and its worth 6000. I keep rolling over the difference into the next car pmt. I am now way over my head and can't afford to make xtra pmts. I was told to voluntarily repo it and get a new car that will hold its value and get out of this hole. I got a new car yesterday and now I am second guessing myself. I was told that they will harass me but they will not be able to garnish my paychecks in the future or put a lein on my house. Is this true? I don't mind it ruining my credit because I have been in this negative equity since the first car I purchased. Now it have gotten out of control and I owe 3 times more than its worth.

 

[sassynini]

I am in a car loan owing 19000 and its worth 6000. I keep rolling over the difference into the next car pmt. I am now way over my head and can't afford to make xtra pmts. I was told to voluntarily repo it and get a new car that will hold its value and get out of this hole. I got a new car yesterday and now I am second guessing myself. I was told that they will harass me but they will not be able to garnish my paychecks in the future or put a lein on my house. Is this true? I don't mind it ruining my credit because I have been in this negative equity since the first car I purchased. Now it have gotten out of control and I owe 3 times more than its worth.

Garnishing your wages would depend on the state and if the finanacial institution decides to persue legal action and get a judgment. If judgment is granted and you refuse to pay any deficiency balance owning yes they can garnish if state law permits. As for the lien on your house again the law varies from state to state. You may also have any other assests afforded the creditor by law of your state attached. See the folowing link http://fair-debt-collection.com/statue-limitations.html