Your car loan is charged off when you have been delinquent on your account for 180 days. The lender writes off this debt as a loss, as they realize that the debt won't be paid. An auto loan charge-off is a negative mark on your credit report and it hurts your credit score. A loan charge-off does not mean that the loan has been forgiven, and you are still obligated to pay the debt. The interest and late payments will continue to accrue. Generally a charged off debt is handed over to a collection agency.
Can you keep the car after charge-off?
You can keep your car after the charge-off only if you pay off the debt. The lender won't release the lien on the car until the loan is repaid. The car can be repossessed if you do not pay off the debt. Even if the lender does not seize the car, you won't be able to sell it or refinance it. Moreover, you are still liable to pay off the debt even though you have lost your car.
However, repossession laws differ according to the state you live in. Thus, you need to know your state law regarding car repossession. Some states allow the lender to seize your car without notice at any time after you fail to make the payments on your car loan. But, most of the states have a breach of peace regulations on car repossession. If the individuals repossessing your car commit a breach of the peace while seizing your car, your lender may have to pay a penalty and the repossession may be temporarily halted.
How to handle an auto loan charge-off
If you want to keep your car and remove the charge-off from your credit report, you will have to negotiate a payment plan with your lender. Make sure you get the payment agreement in writing. Once you pay off the debt, you may get the car back. As for the charge-off, you will have to negotiate a Pay for delete Agreement (PFD) with your lender to remove the charge-off from your credit report. A charge-off will be considered a negative listing on your credit report, which will cause creditors and lenders to deny you credit. Therefore, it is better to try and remove the charge-off with a PFD if the lender will agree.
The best way to prevent your car from being repossessed is to repay the loan. There are several options, like a loan modification agreement, available to consumers who wish to keep their vehicles.
Can bank garnish 401(k) funds to pay off outstanding loan?
I co-signed on a car loan. The person defaulted and the car is being repossessed. My money was in the same bank as the car loan and the bank took almost all of my money to pay down the car note. There is still an outstanding balance on the car note.
I changed banks, but my new job offers a 401(k) with the same financial institute as the troubled car loan.
Can that financial institute recover funds from my 401(k) to cover the remainder owed on the vehicle?
credit card debt
Is my auto safe
credit card debt
Is my auto safe from credit card debt lawsuits
Car repo
My car was reposessed & when I contacted the bank they said the repo would stay on my account. Since my carhad over 100,000 miles I decided to let them keep it and was advised they would sell the car at the end of they month and advise me when. I never received a leter saying when they would sell the car. A few months later I am being contaccted by the bank but still have not recevied a letter saying if the car was sold and if so, for how much. Is it true that your car cannot be sold for less than the value of the car? I also contacted the lot that repo my car everyday and was giving the run around about getting my personal things from the vehicle, so I never got my stuff out the car. What can I do?
car will be charged off next week, want to keep it
my truck is 120days late c/a told me it will be charged off next week. only owe 2,800 on it want to keep, what do i do now. can they still try and take it. they sent someone out once but i still have it.
credit
It's very possible that the car dealership will re-possess your vehicle if it's a 'charge off'. 'Charge offs' stay on your credit for ( I believe ) 10 years. I'm not real sure how you can legally keep it.
Charge off/Collections
I still have a vehicle (although not at my home) that has been charged off and sent to collections. I dont know what collections agency is handling the car and i have been sending payments to the original lender. ... Do I have any options with regards pay off amounts
car reps after chargeoff
i kept my car from reps for 6months, and now it is charge on my credit report, but reps people keep coming to my job. What can i do.
Carol, my Dad died a year ago. My brother was paying the note on his car until he was laid off we've been struggling to pay the note and only owe about 3600.00 on the car. Needless to say its been charged off. I attempted to make a payment on Friday and that's when I was informed that they could not accept a partial payment. I now have two payments and would like to know what I can do to keep my Dad's car. There is no estate. I was his POA when he was living and handled all of his business. My Dad was never late, nor did he miss a payment. Please Advise.
loan charge off 36 months old
Is this worth pay for a delete the debt. Or should I wait out the seven years which will be in 2015. My goal is to raise my credit score.
car loan
I purchased a car back in 2005. I paid $575 for 3 years, then lost my job and filed bankruptcy in 2009. I reaffirmed the loan with Wachovia and was making payments to them for a year after that. I stopped making payments when I realized that my loan was charged off three months after my bankruptcy and showed a zero balance on my credit report. The bank would refuse to give me a balance or send me any statements when I made payments and even told me to pay whenever I wanted.Since then wells fargo took over the loans. It's been 1 1/2 years now, and nobody has contacted me to pay for the car or tried to repossess the car. I have not changed my phone number in ten years so I know that nobody has called. I recently purchased another car, and wanted to make an arrangement to sell this car or settle the balance. They are now saying that I owe, $17,000 which is $7000 more that 1 year ago. What can I do? I want to give the car back but dont want to be sued for a deficiency balance.
co owned property
My sister lost her job, had credit card debt, co owns property with her husband, he knows nothing of the possible judgement against her. Can the creditor have a lien put on their house. Husband is retired and she makes less that 300 a week and this is for health insurance.
Liability
About 14 years ago I was in a car accident that totaled the car and I did not have insurance on it. The lein holder had the wreckage returned to them and they have never contacted me for the balance payoff. Am I still liable for that loan? Also, I find myself needing another car and they are the only company in town. Would it be foolish to approach them?
my car loan
I currently have a car loan with Nissan 19-20 months old. Recently I fell behind one month. I pay this note on the 59 day never going 60 days pass due. Ever month Nissan bill me a statement which show my due for 3 months (this include the past due month, the current month, and the next month payment). I live in Georgia can Nissan repossess my vehicle?
sol in new york for a 20 year old debt
i received a letter from a collection agency,fro a 20 year old personal loan,i do not even remember that i took that loan,iam 73 years old on a fixed income ss , iam a sick person i have cancer in my throat and e years ago i had a quadruple bypass i have to go to a psyquiatry because i have a severe depression,how can i respont to this. thank you for your help. eladia
Charged off Auto Loan But Still Have Possesion of Vehicle
My husband is military and we are stationed overseas. We have a vehicle in the United States and our finance company was bought and sold numerous times in 2008/2009 when we first moved over here. Needless to say the vehicle hasn't been paid on since 2009. Now here we are late in 2011 and it's getting close to the time we are supposed to return to the United States. I know the vehicle loan has been charged off and I am aware of who the current lender is. The problem is my husband is choosing not to pay off the auto loan until we get back to the states. We will be needing a second vehicle. I fear we will not be able to pay off the charged off auto loan and we still need to purchase a second vehicle. What do we do in this situation? Are we covered under the Soldiers and Sailors Relief Act?
debt
i paid for my college education and then maxed out my credit cards and have a car loan. i lost my job and am behind in everything and am losing everything i worked so hard to obtain, including my good credit. help!
Payment
Should I pay off charges that are the smallest or how does that work? and how long does it take?
MY CAR
MY CAR IS PAID FOR, AND I LIVE ON WIDOWS BENEFITS. CAN'T PAY CREDIT CARDS ANYMORE....CAN THEY TAKE MY CAR?
repo
If the car is the only thing that is on the loan, then..yes..that is the only thing they can take. Was it a bank or finance company you received the loan from? Just curious..I suppose. Did the lender already take your car? Was the loan only in YOUR name?
being sued for credit card debt
this is the first time something like this has happened to me and not knowing the law i think im up the creek without a paddle.the thing i need to know is how to answer a civil citation and second is should i fill out the request for admissions forms I am lost and dont know what to do the credit limit was 1,000 dollars which I spent but their asking for 4,100 dollars what can I do to make this go away. Any advice would help thanks.
credit
JOEY..our forum would like to help you,..however..you really need to give more information. For example: the "credit limit"?..was it on a credit card, etc? A civil citation..on what? What state do you live in? Thanks. I can probably look up some information for you if the above questions are answered for me.
SHERRI...was it a letter you received for someone who doesn't live there? If it was, then call the phone on the letter and give the forwarding address and phone number to the CA you are calling.
liability/penalties
I have a car that was written off in my bancruptcy. The bank and I have a verbal arrangement allowing me to keep the car/make payments without reaffirming the loan. I'm paying a high price after my divorce and am having trouble making payments. If I have to return the car I am fine with that but my concern is that I have not been able to maintain the car ie. winshield, bald tires, etc... Can they come after me for the cost of the car plus damages that would lack in it's value for resale?
Charged off loan
Carol. I knoe many times the banks demands are not reasonable, do you know of any attorneys who handel negotiations to settle a c/o debt with auto loans?
Repo
I live in arizona I have a vehicle that has had a repo order on it since 2007, is there any reason to worry that I could be charged with theft of means of transportation if pulled over in it.
auto charge off
i owe 2600 on my auto lease and plan to pay 1300 of one week and the other 1300 the following week. the dealer said that i'm 138 days past due and that my auto loan will be charged off when it hits 150 days but i thought it was 180 days in pa
Car loan
I havent made a payment on a car loan in over 4 years. It was all late fees but still about $1800 worth of late fees. Times were tough and I was not able to make the payments.. They stopped calling me for about 2 years..they never repossessed the car.. It wasnt working but now that I am back on my feet, I want to fix the car, register it again and start driving it.. Can they still repo it even though it has been charged off an a collection agency now has it.. after 4 years?
car repo
Hi,
My car was totaled five years ago and told my loan company about it and told them where the car was to pick up and everything and now five years later ( never heard from them or them trying to contact me) I got a letter three days ago to respond within 30 days of the letter to talk and come up with an agreement to work things out. Today (three days after the letter) A sheriff comes by with a court summons within 7 days to either give them the car ( Which I don't have for five years now) or collect the debt owed. How does that work and what can I do? I don't have the car. They were suppose to have picked it up all those years ago and they never let me think any different all these years.
telephone bill
my bill is 90 days late if i get a settlment for 1/2 of the bill,they still will mess up my credit?
Unpaid off car loan w/ a charge off. How do I find the lien
I have a 1999 car that I did not pay off. I still have the car but am trying to find out who owns the car so I can make arrangements to pay it off so I can get the title. It no longer shows on my credit report.
Retain and pay auto loan
If the debt is charged-off during bankruptcy, what happens to the lien?
car charge off threat while I am still making payments
I have only $650 left on my car payments. My loan was due to be PIF in May 2012. I have been making payments every month and only was behind 2 times while having the loan. They are now threatening me with a charge off if I do not pay the $650 in full. I am technically 70 day's past due. My monthly payment is $410. I told them I am paying $410 in August and the remainder in Sept and the car will be paid off. Can they still do a charge off while I am making payments?
Tax garnishment on a repo car 15 yrs ago
I co-signed for a car 15 yrs ago and now the company and creditors are coming after me through the IRS. What are my rights?
charge off
Hi we paid off our loan but I geuss we still owe late fees and interest now they have charged off can they still repo the car and why would they noy contact us stating we owed money ?
charge off
what happens if i filed bankruptcy with this charge off cause going thru a divorce????
Did not reaffirm Boat
My chapter 7 was charged off over a year ago. One of the debts included was a boat loan and I did not reaffirm with the creditor. As I said earlier it has been over a year now and they still have not come to get the boat, what should I do ?
Auto Charge Off and Chapter 7 Discharge
I filled Chapter 7 and received discharged. However, when filling papers, I indicated to retain car, but forgot the words "affirming the loan". On my credit report it states, car charged off included on chapter 7. I was making payments faithfully. What to do from here?
A charge off account
I filed bankrupt , however my employees were not taking out the correct amount for the case and the case was dismissed. I am paying on the car even though its charged off, I wasn't evenaware of it being charged off. Now I am divorced, and houshold has changed income wise. I want to con't paying and keeping my car. Am i able to renegotiate to an amount thats more comfortable for me. I do not want to file bankrupt. The default was due to my employers, they admitted to that. My pay was being drafted
repo
My car is paid off I owe just some late fees can my car be taken
Hi, if your car is charged off and they haven't repo your car yet, and if you file chapter 11 bankrupt, can you file the car as well, so they can't repo it?
1099 C
Bank filed a 1099-c. I still have the vehicle, they do not want it back. how do i get the title.
Keesee
What if u have paid 72 payments on your car but noe u owe interest and late charges and one payment and the will not settle with u because federal law they have to charge odd after so
Many days after contract ends can they still reposess
repossession
i owe 3.17 on my car loan but owe 652.00 in late charges can they reposses my car
charge off
i have a charge off on auto loan my credit report said 4200$ but my car dealership said i could pay them 2800$ no intrest and do you think they would do a pfd
Remove charge off question
I have an automobile charge off on my credit report. I am willing to pay the negotiated rate of $3700.00 but can't get the finance company (Santander) to remove the charge off. How can I make this happen?
Keeping my car
I got a letter from the bank stating that my has been cahrged off, I called to talked to them about it and they told me some of my options. 1. Pay the car off in full, 2. They would take a settlement amount, 3. Go to a credit union to see if they would finiance this car, and they're giving me time to do this. What do you think?
REPODE BUT LOAN IS NOW PAID IN FULL
MY BIKE WAS REPODE 1 1/2 TEARS AGO I AM NOW PAYING OFF THE LOAN IN FULL. DO I GET MY BIKE BACK OR IS IT MY LOSS
1 account 2 credit rating on debt?
I have a 4 year old charge off on car that I had to let go due to job market and unable to make payments. Company of course did a charge off and sold balance owed to collection company. My question is on my credit report shows the charge off AND the collection company as bad debt. Why are both companies allowed to report on same loan? Showing up as 2 different companies but really for one Even though another company purchased the debt. Is this allowed?
charged off car
Filed bankruptcy chapter 13. Car charged off during bankruptcy. Lawyer changed to 7. Car taken off..received letter in Dec about charge off.still have the car. Discharge pending.what are my rights regarding the car
charge off
I trying to find out the law about a car in my passion When I last spoke with them in April of 2012 they was suppose to repo it I keep calling them so they can sell it and tell me what was left on the balance for me to pay but after may of 2011 I never heard from them and in june of 2012 I found out they did a charge off I was never notified about it the last time we spoke they was sending someone to come get it and than I find out it was charge off what it the law for that and I have not heard from them since May 2012 I found out through a car dealer it had been chargeoff