I hate to say she may just have to wait it out until that repo is completly off her credit report, even if she decided to do BK that repo is still going to be on her credit report. Someone else should chime but There are probably loan companies out there for people who have had repo's but I can just imagine the interest rate charges. If I was in this situation I would just buy a used dependable car until credit report improves. Good Luck in meeting in your endeavors!!!
Starting Score: EQ 546 TU 566
@ymmv wrote:Tray,
Thank you for your response. Right now, we're not concerned about her ability to get credit because my credit is fine and she's an AU on several of my cards. The downside is she's not qualified for much right now and won't have a deep credit history for a few years. We can't really rebuild yet.
At this point I'm hesitant to even payoff her two CC accounts in collection - few years ago - because it might trigger an action from the auto loan. I've read some posts on creditboards. I guess I was looking for alternative dispute methods like debt validation ... etc . To be honest, I'm not too familiar w/ those processes.
ymmv
As far as debt validation, are you just trying to get the repo off your credit report, or are you trying to settle the loan balance? Because it seems like the credit report is the least of your concerns and unless they have no proof of the original loan docs requesting debt validation will not do anything for you (this is highly unlikely but not unheard of in the case of many major lenders, BoA, CitiBank, etc.). Also, are you currently making payments on the remaining 8k or not? The reason I ask is that if you are making payments on the loan then you are extending the period of time that the lender has to file for a judgement/ garnishments, etc. Meaning that if you stop making payments they will have 5-10 years from that date if last activity (your last payment on the loan) depending on what state you live in.
If you are not paying the debt, I would do nothing but pay attention to mail and make sure your address is up-to-date with the lender as they could file a suit against you at any time, and YOU MUST ATTEND THIS HEARING or you will get screwed! Do not make payments, do not do anything but simply wait for the statute of limitations to expire and then you are home free. It is very unlikely this will happen with the 8k car loan remainder, but far more likely to happen with the other collection accounts (most collection agencies will sell off the debt before ever attempting to take you to court for it, but this creates a hassle as far as getting it off your reports). My advice is trying to contact the lender and settle the loan outright; tell them you have xxxx lump sum of money and wish to settle the account. If they do not wish to settle then you will not be making any payments and will declare bankruptcy to dissolve the debt along with other and they will most likely not receive a penny.
If you are making payments, then you have no real leverage as far as settling the loan, just keep making payments and get rid of the debt as soon as possible!
Good luck man, im pulling for you!!!
I actually have a repo from 2007 that is unpaid. You look good to me - they sold my $30k car for 8,000. I owe $22,000 on a car I dont even have.
I've pretty much ignored everything. I don't answer the phone 
I don't know what else to do. I don't have $22k. I drive an older car. I rent. I have no assets - they still have 4 more years to sue me, but they haven't yet and I don't know if they will even bother seeing as I have nothing. It's just my luck that I live in one of less than 10 states that have 10 years or more for SOL. It's kind of lame that my state is more than 3 times the length of TX SOL =/ On the plus side, TU gave me an estimated date of 5/14 before its off my report, at least.