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Negative equity, possible repo, recent BK

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Negative equity, possible repo, recent BK

So I’m going to try to be as thorough as possible with as little typos as possible since I’m using my phone. In April I purchased a vehicle on my own from a local Chevy dealership, and at the time there were two incomes in the home. Mine and my fiancé’s. I just started a new job the same week I was able to purchase this vehicle. It’s a 2015 Chevy Malibu LT with 35k miles on it. Purchased for $16,700 at 16.7 percent interest, $370 per month payment. (It’s only in my name) Fast forward a couple of months, and my fiancé and I split up and I moved out. In doing so, I maxed out credit cards and took out a small loan to pay for expenses. I have been BARELY keeping myself above water with three small kiddos since then. Thinking I’m breaking even, putting my credit cards away trying to pay down balances, only to have to pull them back out to pay for gas to get me until next paycheck or other necessary expenses. My bankruptcy is a little less than two years old for medical bills when my daughter was in the hospital after she was born and i went into labor early out of state where my insurance wouldn’t cover. My score sits at around 610 per the last dealer that pulled it a couple of weeks ago. I make $10/hr full time approx $1300 checks after taxes and I have $1400 going out just in monthly bills. That doesn’t include diapers, gas in my car, groceries. I can’t trade down my car because my DTI is too high and my score is too low no bank will touch me. Nowhere will refinance me. Co-signer is not an option for me. Exeter’s, who my loan is through, solution was two split my payment in two. But the problem isn’t the chunk of money all at one time, it’s that the money isn’t there. I can’t even sell outright to an individual because I can’t get a loan to cover the remainder. My bills are as follows:

Rent- $250 (Had to go low income after the breakup)
Car- $370
Insurance- $115
Cell- $50
Utilities- $300
Small loan- $100
Credit Cards- $200
Daycare- $200 (also based on income.)

I do not receive child support and would be a cold day in hell if I ever seen any. Have no family help/support (most are in worse financial states than me surprisingly) The issue with taking up a second income is child care and rent. I do not have child care in the evenings and weekends. If I did find someone that could keep them, i’d be working to pay the babysitter on top of losing my assistance for daycare during the day for being over income and having to find somewhere else to live for being over income in my current home. Rent in this area is anywhere from $500 to $1000.
I have no collateral. I literally have nothing of monetary value except that car. I had a local bank go through every scenario with me today and he just looked at me and said, “Hun, I’m so sorry but it looks to me like you’ll just have to let your car go back and hope to hell that they don’t sue you and just write it off and send you a tax form.” With three kids and a full time job, I will need a car. Just not the car that I have now, unfortunately. I was hoping maybe I could secure a loan at a used car dealership BEFORE my car went back, around the $2-4K range. Something that will keep my payments under $200. But the banker today said that with my situation it’ll be impossible for anyone to want to loan me anything except a buy here pay here that will leave me worse off. So, I suppose I’m asking for advice/someone that’s been in a similar predicament. A solution? Also, I’ve never missed a payment, and I’ve never been late. I’ve had 3 previous car loans. All were paid off, never late, never missed payments.
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Frequent Contributor

Re: Negative equity, possible repo, recent BK

Sorry to hear of your predicament.

Looks like only a few things could help and they may not be easy/possible.

 

  • Get a job that pays much more than you are making now so that after losing assistance you are still ahead of the game. I know this is not easy or likely and to get there you would most likely be stuck in the middle where you make more and lose assistance for a while which would be devastating.
  • Go after child support. Listen I was a divorced single dad with sole custody now happily remarried.  I am in a few support groups for single dads and single dads with kids.  Child support is the law and you and your children’s rights and unless he is deceased at of the country or an anonymous donor you may have success in obtaining child support which at this point could be life changing for you. 
  • Look into further assistance, maybe there are food banks, food stamps that can help.
  • With the car loan talk to Exeter I know you have but specifically ask them if it’s possible to defer a payment or two. Many lenders will allow you to defer a payment or two per year.  Imagine what an extra $740 could mean to you today. 
  • Your scores are not that bad for financing. If you had better income you would get approved but I think you can get a loan for $2,500 - $5,000 at say 29% or lower.  $2,500 /5 years at 29% is $79.35 and $5,000 is $158.71.  Consider doing that and a voluntary repossession on your Malibu.  You will still take a ding but maybe not as bad.

 

Sorry that’s all I can come up with.

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