Legal Question in Credit and Debt Law in New York

Re: repo of a vehical

I am sorry that, through no fault of your own, your finances are not deep enough to withstand this challenge. I hope the disability is temporary!

If the bank reposses, then it will appear as a repossession on your credit report. That is the good news.

The bad part is that the car will be put up for auction and be sold for less than 1/2 of its current value and that amount applied to your loan.

If that pays the whole loan - great! and any excess will go to you. However, it is unlikely that it will. Likely you will owe more and the bank will then take direct legal action to collect the deficiency.

Bankruptcy may protect the car and your other assets, but that would depend on an examination of your finances.

What you must avoid is the repossession. GO TO THE BANK AND ASK FOR THEIR HELP! IF THEY DECLINE TO ASSIST YOU (stop interest immediately, take back the car for the whole amount due or give you time to sell the car for a fair price);

Then threaten them. Say you will sell the car out of state (better- in Mexico!)and they will get nothing because you are now broke. Be tough.(They will be tough) and try to strike a deal.

Your goal is to give back the car and get a credit for the total loan due. Accept about 80% credit. That is a very good deal.

Good luck.