Legal Question in Bankruptcy in Ohio

Still in debt for repossessed car

Car financed in Colorado, while I lived there, repossessed there when I couldn't pay bills. Now live in Ohio with parents, work fast food ($500/mo. after taxes). Creditor sold car at auction and says I still owe $4,700. Only other bill is a credit card which will be reduced to $600 after income tax refund arrives. Have no money in the bank and pay my parents each month for help with past bills.

I've paid minimum monthly credit card payments so it won't be in arrears. I'm 19. Should I make small payments on the car for years or declare bankruptcy and hope the debt is eliminated? Is my credit ruined either way? I doubt that declaring bankruptcy is necessary but would like a professional's opinion.


Asked on 5/04/02, 6:44 pm

1 Answer from Attorneys
David Weilbacher, Esq. Attorney at Law

Re: Still in debt for repossessed car

You need to address your question regarding the car with a Colorado attorney. In Ohio, when a car is repossessed and sold at auction for less than the amount of the loan, then the barrower is liable for the deficiency. In Colorado this might be different. There are other questions. Did you receive notice of the auction sale prior to action? Did the car sale for fair market value? Who bought the car?

As far as your credit, it is already tarnished. Filing Bankruptcy will have an additional effect on your credit, especially given the relatively small amount of debt. After you address this matter with a Colorado attorney, you might be able to work out a compromise with the car lender.

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Answered on 5/08/02, 2:11 pm


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