Legal Question in Credit and Debt Law in Arizona

debt relief

I have been trying very hard for 3 yrs to avoid bankrupcy. I went to a truck driving school, went to work for a major co. and was doing OK. Then I bought my own truck to try and do better( 3/2004). I have spent over 3,000 on repairs in 4 months, in addition to the down time. 3 days ago, while getting it worked on, I was told that I proably was going to have to have a new bushing installed that would require disassemlying the front of the engine(proably another 1,000 i was told). Since I know thatI have been making less than a company driver, I decided I would talk to finance co. about turning the truck in.(the finance co and the dealer i got the truck from are owned by the same corp.) They said if I did, they would auction the truck and I would still have to pay the diffence. This will not work because i paid too much for it. I need to know can they do this??(it is in the contract) I also need to know if they did this and If i filed bankruptcy, would I get relief? I do not believe in bankruptcy and am trying to avoid it. I am 67 years and am looking at 2 more years of work. I thought this truck would accelerate that schedule but it is not happening. I am tierd!! THX


Asked on 7/30/04, 7:47 pm

1 Answer from Attorneys
Debra Palomino PALOMINO LAW FIRM, P.C.

Re: debt relief

Yes, more than likely the purchase agreement you signed will allow the lender to go after the deficiency. You would probably make more selling the truck yourself, rather than turn it in and the lender sells it for a very low amount. Bankruptcy would solve this situation in getting rid of the deficiency.

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Answered on 8/06/04, 1:44 am


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