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I just can’t afford the payments of my 2006-Honda Civic. I’m 2 months behind and I am thinking in voluntary repossess the car.
I called American Honda Finance Corp. and they told me that when I decide, I have to call them to let them know that I want to do it, then they are going to contact the Dealer where I bought the car, and then I can go to sign some papers. Do that mean that they can take me to court to make me pay the negative equity? What would happen if I do it beside the bad credit history for 7 years?
My balance is 19,800

Any other suggestion???
Help!!!!!!!!!

3 Comments »

1. 

   A voluntary repossession is the same as a non-voluntary one. it will have the same ramifications as any other repo. The only difference is they are not sending the repo man to get the car.

   They will sell the vehicle at auction. You will be responsible for any more money owed on the car.

   Comment by AD — August 21, 2009 @ 11:27 am

2. 

   After the repossession occurs there will be a deficiency balance owed on the vehicle which will be the difference between the sale and the amount owed. Your best bet would be to look into settling the account.

   Settling the account would speed up the time frame for paying it off and reducing the negative impact on your credit. Settlement letters such as http://www.fdnsolutions.com/settlementletters and http://www.1800debtsettlement.com/repolanding can both settle the account for you one a deficiency letter is recieved

   Comment by Debt Guru — August 21, 2009 @ 11:27 am

3. 

   Sounds like you are in a bind because the loan is probably upside down between $2k-$5k. They will come after you for the remainder of the loan. They will garnish your wage and get their money.
   Your best bet would be to sell the car for retail and see if you could get a personal loan (with cosigner) for remainder.
   Or, faced with a note for the negative, plus buying another car, try to make the note even if you get another job. Good luck.

   Comment by LEF — August 21, 2009 @ 11:27 am

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