not sure what to do about this creditor

[lindsay2181]

So, I quit paying regular cc bills about 8-9 months ago. One thing I was still making sure I paid, was my loan with Citifinancial, since they used my car as collateral and now have the title. I thought, I HAD to pay them for sure, right up there with the mortgage, car insurance, etc. Put them on the "priority list" of bills.

Well.....they have been good to me, always friendly and understanding, gotten several deferments during hard months, and they gave me an AOT (adjustment of terms) for 6 months which allowed me to pay about half of the normal minimum payment (of course this was only racking up more interest in the long run) Well, the AOT recently ended and my payment went back up to $300. I could not pay last month but luckily they were offering all customers a holiday deferment, so all I had to pay for December was the $70 interest. Here were are in Jan and due again....I just can't pay ANYTHING right now.

I don't know if I should just quit trying to pay them now....I'm hoping to file ch 7 in march. The car is only worth about $1100 and the balance of the loan is about $6k. I highly doubt they will come and take the car in the middle of the night.....it's not really worth it to them right? But if I quit all attempts to pay them and then file BK later on, I will most likely lose the car eventually I suppose? Should I plan to take out my personal things--my child's carseat, etc. in case they do come and take it?

I hate confrontation. CC's and CA's calling me over the phone, I can just not pick up the phone. But I usually make payments to Citifinancial in the local office and I have had a heart-to-heart or two with the manager there and she is aware of my problems and even suggested BK to me a couple months ago. I'm not sure if I should just go over there and tell her, I'm AM looking into BK and not going to pay anymore? Or should I keep trying to pay them so that I can save my car? I'm a little confused on what to do.

[pcn]

Try a search on "cram down". I'm not knowledgeable on the subject, since both our vehicles are paid off I didn't pay close attention to those type posts. The basic idea I got though, was that if it was an older auto loan, past a certain time limit, during the bk it was possible to reduce the balance to closer to what it was actually worth. So, there may be a way to save your car (I'm guessing you need a vehicle) if you are filing soon. I may be completely off base, so please search more before you give up your car. Good luck!

[AngelinaCatHub]

Lindsay, 6K on a car worth $1100. You have an exemption of 1K, but not on a secured $1100 car. The possibility of them taking it is low. You could still drive it without Title as long as insured and tagged.

We are driving a 1983 Pontiac Grand Am that we got for $800 bucks four years ago. Put about $300 into it and keep it oiled and it runs perfect. looks like what it is, an old police car.

If you can't pay you just can't. Join the club. We have all been there. It is time to confirm (in your mind) that decision and take that most important first step. Take care for a new beginning and a wonderful New Year. 'Hub

[lindsay2181]

Ok.....I'll take a look into that.

We have another (newer, more dependable) vehicle. So if we did lose the car, we'd just have one vehicle to share and it probably wouldn't be terrible. I think it just seems BAD to me, to have anything repossessed.

ETA: it appears that is something only available in a ch. 13? Also....my case is a bit different b/c the car is being held as collateral for a loan, i'm not making payments to a dealership or anything like that. So there's no way Citifinancial would reduce the amount of the loan I have with them to the car's worth.....

[lindsay2181]

Lindsay, 6K on a car worth $1100. You have an exemption of 1K, but not on a secured $1100 car. The possibility of them taking it is low. You could still drive it without Title as long as insured and tagged.

We are driving a 1983 Pontiac Grand Am that we got for $800 bucks four years ago. Put about $300 into it and keep it oiled and it runs perfect. looks like what it is, an old police car.

If you can't pay you just can't. Join the club. We have all been there. It is time to confirm (in your mind) that decision and take that most important first step. Take care for a new beginning and a wonderful New Year. 'Hub

The $6k I owe is for various cc and medical bills...it was a consolidation loan. (From back when I FIRST got myself into debt, in college) and they wouldn't give me an unsecured loan, so they suggested i put up the car title as collateral even though it's value was MUCH less than what I was borrowing.

[jribe]

The $6k I owe is for various cc and medical bills...it was a consolidation loan. (From back when I FIRST got myself into debt, in college) and they wouldn't give me an unsecured loan, so they suggested i put up the car title as collateral even though it's value was MUCH less than what I was borrowing.

i would just stop paying it, and roll the dice. The car is horribly upside-down, and the collateral is old medical debt.

You don't want to continue to pay $6k on that do you?

If it charges off, then you're off the hook for the 6k when you file.