swingarm
New Member
Cash: $ 1.35
Posts: 6
Joined: 14 Jan 2011
Location: Colorado
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I have a problem, here's the setup for it.
In April 2007 I finalized my bankruptcy, later on in the year I got a job. About 2 months after I got the job I bought a new car. Everything was fine until early in 2010 I found out I had high blood pressure then a rare genetic kidney disease. After being off of work for 3 months I determined due to several factors I could no longer do my job and went on disability. I also made arrangements with the bank to give my car back to them. Why give it back to the bank instead of selling it? Even though I was doing $250 over the minimum car payment for 2 years I still owed more then it was worth. Bank sold the car in September of 2010 but for $6000 less then I owed on it. Nothing happened for 90 days then in December a collection agency called me. In those 90 days I found out I could've made payments but there's no way I could've payed it off.
My problem is I don't have any way to pay them. They recommended a couple of nice institutions to get a loan from, they promptly both denied me. Per their second request I've tried getting a loan/credit card. Problem with that is because of my bankruptcy I have bad credit and all credit cards made for bad credit have really small limits, around $500. I tried personal loans but they all top off at about $1500. It's not feasible to do multiple credit cards/loans because I just won't get approved for that many. Even if I had good credit it would be difficult to get a loan/credit card for any significant amount because of the economy. I can't use cosigners because of the people I could use for that are in worse debt then me. My parents, sister, and friends don't have $6000 floating around to loan. What about my assets? Well all I have is a 1995 Olds($1500 value) and a scooter($1500 value), I'm currently living with my parents. The collection agency then recommended a payment plan with them but the only problem is it only lasts 90 days. As a last resort I tried my bank but they won't loan me anything because of my bankruptcy.
My question is this it for finding money? I can be sued for the money but they can't garnish my disability and they can do nasty things to my credit but it's already bad. My situation allows me to make payments but I can't get a loan high enough.
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Fri Jan 14, 2011 7:43 pm |
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oldguy
Senior Member
Cash: $ 751.85
Posts: 3656
Joined: 21 May 2006
Location: arizona
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Quite a long list of bad decisions - bk, new car, returning the car to the bank, etc. As you look back thru them you can see a common thread, you are continually trying to borrow your way out of debt. You probably know now that doesn't work.
And you definitely shouldn't drag cosigners into this - they can be held responsible for your collection debts, any future liabilities such as a car accident, etc.
IMO, sell the scooter & the car, deal with the collection agency to get a $3000 settlement on your judgment and pay the $3000 to them. You are in a position to bargain - tell it is either $3000 OR NOTHING. But get it all in writing BEFORE sending the money to make sure that the judgment is closed. The 'settlement' will hurt your credit, but as you say, it is already trashed. Good luck.
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Fri Jan 14, 2011 8:41 pm |
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swingarm
New Member
Cash: $ 1.35
Posts: 6
Joined: 14 Jan 2011
Location: Colorado
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Yes, I made a bad judgement call at first with what to do with the car. I should have sold it on my own then maybe have contacted the bank to lower the payments for the remainder of the loan.
Yeah, I didn't want to drag cosigners into this but I had to give a more relevant reason for doing so. Saying, "cause I don't want to", doesn't go over well with collection agency and besides my choices are more deeply in debt then me.
Your suggestion for selling my transportation and getting a written negotiation for $3000 is noted but since I need my transportation, at least for dialysis, I'm going to try for a negotiation down to $3000 and my leverage is going to be that I can get credit cards/personal loans alot easier for $3000 then $6000. Yes, I know, it's more loans but other then hoping someone gives me $6000 out of the blue this seems like my only option unless someone has another idea?
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Sat Jan 15, 2011 5:50 am |
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