Auto loan default (due to accident) A REAL GOOD ONE!!

[tracijck]

What is the name of your state? Texas

2 years ago, my husband and I, foolishly entered into a contract w/ a dealership and purchased a larger vehicle.
Like most, we were upside down on the contract.
2.5 years later, my hasband wrecked the car and it is totaled.
He immediately purchased another vehicle (2d veh.). Upon settling with our insurance company, we still owe the finance company $9,600.00.
(They have been paid all of the principal, they are trying to collect the interest).
I was considering the original settlement offer of half.
They are now calling me 3 to 5 times a day, calling all of my relatives, sending letters and I have to LAUGH.
I have NO INTENTION on paying this debt..............and, I have told them that.
I am not afraid of their antics and I think I know what they can and cannot do to me, I would just like to make sure before i call them back again.......................
Will they just try to collect for 7 years and it fall off my credit report?
Can they sue me for a judgement against me?
If they can sue me for a judgement, may I file bankruptcy on that judgement?
If they sell the debt to another agency, will the date of collection renew?
ANY ADVICE WOULD BE GREAT!!!!!!!!!!!!!!

 

[I AM ALWAYS LIABLE]

My response:

Perhaps you have mistaken the purpose of this site. We don't advise people on how to purposefully avoid their debts.

IAAL

 

[guest.]

While I neither confirm nor deny Lipping's response..

How did you only pay the principal? this really makes no sense since the insurance should have covered the pay off balance, unless you did not carry the required amount of insurance.

 

[tracijck]

Excuse Me!

My response:

Perhaps you have mistaken the purpose of this site. We don't advise people on how to purposefully avoid their debts.

IAAL

Texas
I have not made a mistake in asking questions regarding this situation. Maybe you did not read the entire post.
Once you get past the facts of the situation, you might realize that I asked If this debt would be collected for 7 years and drop off, OR If the company could obtain a judgement against me and renew it every 10 years, AND If that happened would bankruptcy desolve that judgement.
I DID NOT ASK HOW TO AVOID THE DEBT. I mentioned that I would not be paying the debt at the full amount owed, as I was offered a 50 % reduction in the settlement amount.
Once you get past the "fluff", the above questions are, in my opinion, very ligit.
Any bankruptcy attorney would answer these and pass judgement privately on the individual in question. That is why we have bankruptcy laws.
Since this situation is stressful enough, I would appreciate it if, in the future, you would not reply to a post that you are confussed on.
JUST WANTED TO CLEAR THAT UP WITH YOU.
Thanks.

 

[tracijck]

REPLY to Guest..............

While I neither confirm nor deny Lipping's response..

How did you only pay the principal? this really makes no sense since the insurance should have covered the pay off balance, unless you did not carry the required amount of insurance.

As I mentioned in the post, we were "upside down", when we initiated the loan. We owed $13,000.00 on a vehicle and were given $ 9,300.00,(as that is all the book value would allow). Hence, upside down.........New vhicle $18,000.00 + $ 3,700.00 = $21,700.00 add all taxes and fees AND then add interest @ 17%. Two years of payments Approx = $17,160.00, plus $ 9,800.00 = $ 26,960.00 (total paid to finance company).
Notice Insurance company paid $ 9,800.00, we started out upside down.( At the time of the sccident, this was all the car was worth @ Blue book value).
Interest was high @ 17%.
I did mention how foolish the initial contract was. We were not offered GAP insurance, and were not aware it existed. If we had GAP insurance it would have paid the deficiency.

I may have misled you on the Interest. The finance company financed $21,700.00, they have been paid $ 26,960.00, they have been paid the initial finance amount, AND a portion of the interest. Leaving, in my opinion, interest to collect.

 

[Ladynred]

You don't want to get in a pissing contest with IAAL, believe me.

Will they just try to collect for 7 years and it fall off my credit report?

They can try to COLLECT until hell freezes over, NOT just the 7 years it takes for it to fall of your credit report. Since TX has a 4 year SOL for legal action on debts, after that expires, they can sue you, but the expired SOL is an affirmative defense and you can get the case thrown out.

Can they sue me for a judgement against me?

Most definitely.

If they can sue me for a judgement, may I file bankruptcy on that judgement?

Yes.

If they sell the debt to another agency, will the date of collection renew?

No. The date of the ORIGINAL delinquency is what matters. If they change the date of last activity on that, its illegal re-aging and you could sue them for it.