Car Note and Title

[LadyLola]

What is the name of your state (only U.S. law)? My state is Illinois, Chicago.

I cosigned for a car, a 2000 bonneville, in 2006, at the time it had 62,000 miles on it. Now it has 100,000 miles on it. He can no longer afford the car and he wants to turn it back in. I cannot take over the payments at this time. Should I let him return the car to the dealership to be auctined off? I checked the blue book value of the car and it is estimated at $3,500 however the loan that is due is $11,000. I do not have the money to pay for the loan after the car is autioned off which will be roughly $8,000 if it's sold for that much.

1.My questions are should I let him turn the car in?
2.Since I can't afford the car or the loan should I then declare bancruptcy?
3.What steps can I take for me protect the little assets, I have left.
4.Is it even possible to arrange a payment plan at this point for the due amount on the loan?

[seniorjudge]

4.Is it even possible to arrange a payment plan at this point for the due amount on the loan?

A: I would certainly talk to the lender. Repossession and/or bankruptcy are not pretty alternatives.

[racer72]

1. The dealer won't and can't take the car. If the car is to be given up, it must be given to the creditor. They are the legal owner, not the dealership.

[debtcollector`]

Originally Posted by LadyLola

I checked the blue book value of the car and it is estimated at $3,500 however the loan that is due is $11,000. I do not have the money to pay for the loan after the car is autioned off which will be roughly $8,000 if it's sold for that much.

If it is auctioned, I'd be surprised if it went for more than 7-800

[milspecgirl]

Originally Posted by racer72

1. The dealer won't and can't take the car. If the car is to be given up, it must be given to the creditor. They are the legal owner, not the dealership.

unless it is a tote the note lot and then the dealership and the creditor are one and the same

OP- you aren't going to get even close to book value.

Talk to the creditor

[TheGeekess]

Sell the car yourself and make up the difference.