After a car is deemed totaled

[Anonymous]

Hi!  I have a question:  My car was totaled in 2014 (driver of the other car was at fault; additionally, he ran on foot from the scene)  My insurance company paid all but $2500 and has been written off as bad debt.  Fast-forward, my spouse (who died) was the main signer on the loan and I was the co-signer. I have started a dispute with the lender explaining the situation.  Is it possible they will help me with this and remove it from my credit report?

[Anonymous]

Unfortunately there is nothing the lender will do. Although it is a very unfortunate situation for you, you were still contractually liable for the remaining deficient balance. In regard's to your spouse passing away, I am very sorry to hear that! However, loan's are "joint" meaning that both signer's are liable for the loan regardless of the situation, the only thing that would have helped you out in your situation would of been GAP insurance, or Credit life on your spouse if they had passed away while the car was still in your posession and being paid for.

Sorry for the bad news, take care and hopefully you could reach a settlement with the bank and atleast get the account showing a 0 balance.

[Anonymous]

If I offer a "pay for delete" of, let's say, 20% of the remaining balance - which would be $500, would they possibly approve that?

[Anonymous]

I highly doubt it, has the original creditor sold the charge-off to a collection agency? Typically, and I may be wrong here and other's may correct me, but it is unlikely a creditor or collection agency will PFD for such a low settlement amount.

If the original auto lender has the charged off amount still, I have never seen one PFD a charged-off amount.

[Anonymous]

The original creditor is still listed; however, it also says "in collections/charge off."  Additionally, under the remarks section, it says "charged off as bad debt/profit and loss write-off.  What would be an acceptable percentage to offer them when they deny my current PFD?  I definitely can't afford the full amount, but trying my hardest to clean up my credit.

[Anonymous]

If the original creditor still holds the bad debt, and the original creditor is a auto lender, I highly doubt they will PFD. You can certainly ask, and make sure you get any offer's in writing before settling. They will more than likely settle the amount for a lower amount, and it will show as payment after charge-off, or settled for less than full balance, which would look a little better to future lender's.