Is it grand theft auto?

[OutofWorkInNC]

My state is North Carolina.

Hello everyone. Here is my dilemma.

I have always worked consistently and been able to pay my bills. Nevertheless, I purchased a new car in 2008. I was working a great job and did not have a problem paying my car note at first.

However, I was laid off about 5 months after I bought the car from a $20.00 per hour job. I found myself working jobs for $9.00 and $10.00 per hour to keep some income coming in. This was not enough to pay my bills so my 15 year old daughter and I got evicted from my apt., etc. We currently live with my best friend is SC. I know its another state but we are only 15 minutes from the NC border.

I found myself not being able to keep up with my car note. I was at that time communicating with the lender and struggling to make payments every 2 weeks instead of one lump sum. Nevertheless, I fell far behind, too far behind to catch up. 9 months or 9 payments. I still have the car.

My intention is to give it back. However, I have needed the car to get around, to get to work, etc. I'm not justifying my actions all I can say is that I really needed the car as I do not have anyone else to depend upon to drive me and my daughter back and forth.

I just started working after search for a job for the last 6 months. I plan to purchase an inexpensive car cash (around $1,000) to get around so that I can return the car.

Can anyone tell me if this is considered grand theft auto or if this is strictly a civil contractual matter?

Also, I plan to file bankruptcy because I don't make enough money to cover our bills which includes the car, medical insurance, etc. Will I be able to file chapter 7, which wipes everything out?

Can you suggest to me the best way to handle this situation? I really want to resolve it. I do not have anything on my record and I don't want to have a charge of grand theft auto.

Thank you

[Skywench]

I'm, by no means a lawyer, but I'd have to say that there is no way this could be grand theft auto since the vehicle is titled in your name. You can't steal your own car.

As for the rest, I don't know alot about bankruptcy but I do know that medical insurance is not a "debt" so bankruptcy wouldn't have any bearing on that. What other debts do you have, other then the car?

[JETX]

Originally Posted by Skywench

I'm, by no means a lawyer

As for the rest, I don't know alot about bankruptcy

Then why did you feel compelled to answer??

[JETX]

Originally Posted by OutofWorkInNC

Can anyone tell me if this is considered grand theft auto or if this is strictly a civil contractual matter?

This is NOT auto theft (grand or not). It is a simple matter of breach of contract (your breach is refusal/unable to pay as contracted).
At some point, the lender will exercise their security interest and 'repo' the vehicle. You would then still be liable for any unpaid balance, plus costs, less funds they receive in the auction of your car.

Will I be able to file chapter 7, which wipes everything out?

Under the current bankruptcy code, no one can answer that without an extensive review of your debts, assets and potential income.

Can you suggest to me the best way to handle this situation?

Very simple. Sell the car. If for less than you owe, you will have to make up the difference in cash (needed to get a 'clear title' to deliver). The cost to you will be FAR LESS than the cost of the repo, etc., hit on credit history, increased interest due to repo, etc.