What is the name of your state?What is the name of your state? MD
I am not sure how to handle this. The auto we currently have has a balloon payment due in March 05 of approx. $9500.00. The bank that has the lien on this vehicle said even though we are paying our auto loan outside the plan, we are still in default. Therefore, in March 05 we will need to pay the full amount. The bank also said, (and so does the back of the contract) that since we are in default we cannot sell the auto back to them in March, and we cannot refinance the auto. It appears the only option is to pay the full amount which we cannot pay the full amount. So how do I handle this? What will happen if we take the car back to the dealer and tell them we are turning the car back in? Will we be responsible and/or owe more monies to the bank? Will they be able to come after us for the balance? Since we made all payments on time, never once late, will this last balloon payment that will not get paid be considered a reposession? Will the bank be able to charge us with anything? I am so scared. I am trying desperately to sell the vehicle or refinance. However, there is no one out there that is willing to refinance us as long as our bankruptcy is still open. The only option I found out today was that CarMax said they will buy a vehicle without you having to buy one from them. However, if their appraisal is less then the balloon payment, I will have to pay them the difference. We are in Maryland. Does anyone have any suggestions on what I can do. Time is running out and I am getting very nervous and scared. We have been in Chapter 13 for 24 months now. We have 36 months left.
Thank you for your time, help and support.
I am not sure how to handle this. The auto we currently have has a balloon payment due in March 05 of approx. $9500.00. The bank that has the lien on this vehicle said even though we are paying our auto loan outside the plan, we are still in default. Therefore, in March 05 we will need to pay the full amount. The bank also said, (and so does the back of the contract) that since we are in default we cannot sell the auto back to them in March, and we cannot refinance the auto. It appears the only option is to pay the full amount which we cannot pay the full amount. So how do I handle this? What will happen if we take the car back to the dealer and tell them we are turning the car back in? Will we be responsible and/or owe more monies to the bank? Will they be able to come after us for the balance? Since we made all payments on time, never once late, will this last balloon payment that will not get paid be considered a reposession? Will the bank be able to charge us with anything? I am so scared. I am trying desperately to sell the vehicle or refinance. However, there is no one out there that is willing to refinance us as long as our bankruptcy is still open. The only option I found out today was that CarMax said they will buy a vehicle without you having to buy one from them. However, if their appraisal is less then the balloon payment, I will have to pay them the difference. We are in Maryland. Does anyone have any suggestions on what I can do. Time is running out and I am getting very nervous and scared. We have been in Chapter 13 for 24 months now. We have 36 months left.
Thank you for your time, help and support.