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Auto loan Charged off as bad debt, but no repo

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Auto loan Charged off as bad debt, but no repo

Here’s my situation:

I bought a new Jeep with Chrysler Capital in 2018. I made about five payment on time before my husband lost his job, we had to move across the country and weren’t in any position to either pay for the Jeep, get a new vehicle, or get rid of it because it was the only vehicle we were able to keep.
So we made the move and figured we would just keep it a couple months until it was repoed and then figure it out at that point.
Fast forward on year:
We still have the Jeep. We haven’t made an attempt to hide it or anything, but it was never replied. I have kept insurance on the vehicle this whole time. I also reregistered the vehicle about three months back with no issues. I checked my credit and the loan from Chrysler capital is showing as a charge off/bad debt... But at the same time there isn’t a notice from a collection company for the same amount. My husband is back working again and we are in a much better financial situation. I would like to keep the car if I could? It’s only a year old and a very nice vehicle. I have read researched several different forums and have read about calling the dmv and getting the title released. I’m not trying to skip out on the debt owed. In a perfect world I would just reinstate the loan and just go back to monthly payments, but I don’t know if that’s even possible at this point? I don’t want my wages to get garnished, or to get sued, which hasn’t happened as of yet.. what’s my next step????
Any advice would be greatly appreciated.. and I don’t need people telling me what a piece of crap I am for “trying to get one over on the man”.. because that wasn’t my intention what so ever... we experienced a bad financial situation, and had to do what we had to do.. I feel bad enough about this already.. so save it! For everybody else! Any advice would be great! Because I’m pretty much in way over my head!
Oh, and it was a purchase, not a lease.
Moderator Emeritus

Re: Auto loan Charged off as bad debt, but no repo

No one here should judge you. I suspect they are trying to find the vehicle but you moved so that has proved more difficult. Usually this does not take over a year though. Since it sounds like you can afford it now, you may want to call and try and work something out. They likely would rather do that than repo. Once they actually repo'd the car, your credit should reflect this. 


Generally, you can keep your car after the charge-off only if you pay off the debt. The lender won't release the lien on the car until the loan is repaid. The car can be repossessed if you do not pay off the debt. Moreover, you are still liable to pay off the debt even though you have lost your car.


Remember, you are responsible for that car until the lender comes and gets it. Keep in mind the lender may never move to repossess the vehicle - that has happened - but you can’t sell it without the title. You should call them and find out what they plan to do with the car and your options. 

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