How can I help my Husband?

[brosiagirl]

My Husband took out an auto loan back in December of 2015. He started missing payments in January 2017, made a payment in April 2017 and has not made a payment since then. So, he's 23 months no payments. Collection efforts have stopped I'm assuming because the car is not worth much at all. The balance on the loan is $9600. He doesn't care at this point if he has to do away with the truck. It's honestly a peice of junk now. This is really the only debt he has aside from 2 small collections. What's the best strategy out of this car loan??

[Jnbmom]

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@brosiagirl wrote:

My Husband took out an auto loan back in December of 2015. He started missing payments in January 2017, made a payment in April 2017 and has not made a payment since then. So, he's 23 months no payments. Collection efforts have stopped I'm assuming because the car is not worth much at all. The balance on the loan is $9600. He doesn't care at this point if he has to do away with the truck. It's honestly a peice of junk now. This is really the only debt he has aside from 2 small collections. What's the best strategy out of this car loan??

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Does he still have the vehicle? Just because you don't think it's worth much, doesn't mean the bank won't try to get their money plus late fees, interest etc. That 9600 is well over 10K by now and somebody will want their money. Not sure what the SOL is where you live, but they could sue and garnish if able by law.

[brosiagirl]

Yes, he still has the vehicle. I believe the loan was just over 10k initially. The $9600 is what the bureau is reporting. He still has the vehicle. I though he should just do a voluntary repossession and see if he can negotiate the balance after they calculate the value of the car. Idk, statute is 7 years in IL.

[Loquat]

Have him reach out to the lender to surrender the vehicle if they'll take it. If so, they'll sell it at auction for whatever they can get and maybe he can work out something for the difference.

With it being so long since the last payment I don't how much the lender will be willing to work with since it's been so long. The only thing he can do is try.