Legal Question in Credit and Debt Law in Texas

Upside down car loans-very high interest rates

I got divorced. We went through bankruptcy.

Afterwards, I had to take out a high interest auto loan-17%-to purchase a car due to my bad credit.

Now, I am having trouble making the payments. I could use that $570/month to pay IRS debt that Ive incurred each year over the last 4 years since my child support is HALF my pay from which all the taxes come out of. If I let the lending company take the car back am I responsible for the difference between the balance and the true value of the car since the rate is so high? Any circumstances that would allow me to get out of this mess?

Thanks,

Desperate and depressed in Houston!


Asked on 1/12/05, 11:29 pm

1 Answer from Attorneys
Sharon Campbell Sharon K. Campbell

Re: Upside down car loans-very high interest rates

If the car is repossessed, the car will be auctioned off and the proceeds applied to your loan. You will be responsible for the difference.

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Answered on 1/12/05, 11:45 pm


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