Car Totaled.... GAP didn't pay off

[itmike]

What is the name of your state (only U.S. law)? NC

I totaled my car and the insurance and gap both paid off but left a balance of $700. The original terms of the loan was for 7 years. I had the car 16-18 mos and was never late with a payment. I have since got another car loan and will have it paid off in December (would be glad to send them substantial payments after December). The problem now is that since I did that I cant afford to pay off this debt. I offered to send them $20 she put me on hold and then came back with if I paid them a good faith payment of $50 dollars they would set up a payment plan. They keep talking about doing 3 installments though, and those figures are to much for me to afford right now. They said if I dont send a payment by the end of the month they will turn it over to agency (guessing that means a collections agency).

1. Can I make them extend those installments out longer?
2. Do they have to accept my offer of the $20?
3. Any advice to keep this from going to a collections agency and smearing my credit would be appreciated as I have a child on the way and we was hoping to use my credit for a house loan next year.

[justalayman]

=itmike;2299808]

1. Can I make them extend those installments out longer?

no

2. Do they have to accept my offer of the $20?

no

3. Any advice to keep this from going to a collections agency and smearing my credit would be appreciated as I have a child on the way and we was hoping to use my credit for a house loan next year.

the only thing that will keep it from going to a collections agency would be to come to an understanding of terms with the lender and live up to those terms. You have no power to demand anything.

[LSCAP]

Don't discuss it. Just send them $20.00 a month in US POSTAL money orders. And keep your part in a file.
Naturally, if and when you can, send more than the 20.00. I'm assuming that you would really like to pay it off.

If they take you to court they will have to add about 150 (court costs) to the debt, with no gaurantees of getting it back. They will NOT be able to add attorney fees. Which makes it crazy for them to pay an attorney 300 an hour plus court costs to collect 700.

You live in NC, considered a deadbeat state.

And before anyone argues with me, That is exactly what I did for a son who got hung up by his company which went belly up after 9-11-01

and as to "really like to pay it off," My wift got a bill for about 2000.oo from hospital and it felt good to finally- a little at a time- (this month) pay it off.

[LSCAP]

I should have added, "They will not be able to garnish your pay, not get into your bank account.

[justalayman]

=LSCAP;2299867]Don't discuss it. Just send them $20.00 a month in US POSTAL money orders. And keep your part in a file.
Naturally, if and when you can, send more than the 20.00. I'm assuming that you would really like to pay it off

they can accept it without committing themselves to that payment plan though.

If they take you to court they will have to add about 150 (court costs) to the debt, with no gaurantees of getting it back. They will NOT be able to add attorney fees. Which makes it crazy for them to pay an attorney 300 an hour plus court costs to collect 700.

are you a betting man/woman? If their original contract includes such fees, they can charge them. Most lenders contracts I have (personally) they do include allowances for legal fees if they have to take legal actions to collect.

and as to "really like to pay it off," My wift got a bill for about 2000.oo from hospital and it felt good to finally- a little at a time- (this month) pay it off.

good to hear.

I did not mean to infer that you should not attempt to make payments as you see possible for you. That would be better than simply ignoring them altogether but it will not prevent them from suing you for the balance anytime they desire.

LSCAP I should have added, "They will not be able to garnish your pay, not get into your bank account.

but a judgment on your credit report for the next 10 years is not going to help re-establish credit.

[LSCAP]

Re' My debt, Justalayman, Thank you. It does feel good.


But as to the judgment; it just doesnt pay to spend 300.00 an hour or whatever, to an attorney to collect 700.00 Especially as the OP is already making some kind of payment.
And they can not add their costs to the bill, Though they can add interest. I think it went up but it was 19%

And since they were negotiating for a quick pay off, two payments, it sounds more like it is a DC and not the OC.
In either case it wouldn't pay to take such a small amount to court and hear the Judge tell the OP, "You owe, so pay it."
Then tell the collector, "No can't garnish. No can't go into bank accounts.

BUT, If the OP does pay it off, It does feel good.

AS I said, NC is considered a deadbeat state.
you know, lots of trees, and pretty scenery, just lousy pay, and taxes.

[LSCAP]

Re' My debt, Justalayman, Thank you. It does feel good.


But as to the judgment; it just doesnt pay to spend 300.00 an hour or whatever, to an attorney to collect 700.00 Especially as the OP is already making some kind of payment.
And they can not add their costs to the bill, Though they can add interest. I think it went up but it was 19%

And since they were negotiating for a quick pay off, two payments, it sounds more like it is a DC and not the OC.
In either case it wouldn't pay to take such a small amount to court and hear the Judge tell the OP, "You owe, so pay it."
Then tell the collector, "No can't garnish. No can't go into bank accounts. No can't collect for your costs.

BUT, If the OP does pay it off, It does feel good.

AS I said, NC is considered a deadbeat state.
you know, lots of trees, and pretty scenery, just lousy pay, and taxes.