Auto Repossession

[hearr]

This does not involve a bankruptcy, but I have a question about what happens after an auto repo (voluntary).
I live in Texas & I'm at the point where, due to a health condition, I cannot afford one of my vehicles. I am almost 3 payments behind to Americredit on this vehicle. I am aware that once I surrender the vehicle, they will/can sell it at auction and come after me for the deficiency. This is a 2003 Ford Explorer that I owe approx. 11,000 on & I guess that at auction, they'd be lucky to get $3,000. Which means they can sue my for the approx. $8,000 deficiency. Since I live in Texas, I have heard they can't garnish my wages or put a lien on my home, but I am trying to avoid a judgement that can allow them to attach my bank account. Does anyone on here have any experience with Americredit? To avoid my bank account being attached, I'd like to be able to work out a payment plan with them for the deficiency. This may not sound like the smart thing to do, but it's just about the only option I can think of. I've tried to get them to do something like a re-finance which would lower my monthly payment, but they won't.
Any suggestions would be appreciated.

Ken

[optimistic1]

Well they will take your money gladly, especially with you living in Texas. They will work out a re-payment plan, just call them, or wait until they hound you for the deficiency.

[hearr]

Well they will take your money gladly, especially with you living in Texas. They will work out a re-payment plan, just call them, or wait until they hound you for the deficiency.

Thanks for your response. Just to clarify, I have read that after the sale of the car, I might not even hear from them until they file a judgement on me. Is this true or do you feel they will work out a payment plan instead of them trying to go after my assets/bank account? I've read and heard that Americredit can be difficult to work with. I just didn't want to be surprised and wake up & find my bank account siezed one day.

Ken

[hearr]

Anyone else on here that might know?

Thanks,

Ken

[optimistic1]

Of course they would oblige to a payment plan, why would they bother to pay to get a judgement on just your bank accounts?

When you could easily just not use them anymore and put your money elsewhere like pre-paid debit cards and such.

Plenty of people have probably done just that, for fear of their accounts being dumped overnite.

You are quite privileged being able to live in Texas.

[hearr]

Thanks again for your response. I don't know if I would call it privileged to live in Texas as I don't really see where the laws here are that much better in favor of the debtor. I've read from some where a home can't be attached in Texas, but actually I found out that's not true. They can get a judgement against my home, they just can't force me to sell it to satisfy their debt. But an attachment is an attachment as far as I'm concerned.
I really hope you're right about them accepting a payment plan because I've heard that Americredit can be pretty nasty & hard to work with. I really don't want to "oblige" them by offering a payment plan, but I'd rather do that than be forced to close my bank account, cancel all my direct deposits and have to work with strictly cash. And I suspect it would be difficult getting a bank to cash a payroll check or retirement check w/o having an account there.

Ken

[treehugger1]

If you ever used your bank account to make a payment on this auto/SUV, you might seriously want to consider closing that account and setting up a new one somewhere else.

If you do work out a payment plan, then do not fall for the "we need a checking account and routing number."

More important in my mind is, "Why would you want to give up the vehicle, and then make up a potential $8000 deficiency through payments?" While this may sound noble, it doesn't sound like a good personal finance decision on your part.

[hearr]

More important in my mind is, "Why would you want to give up the vehicle, and then make up a potential $8000 deficiency through payments?" While this may sound noble, it doesn't sound like a good personal finance decision on your part.

I totally agree, but as I mentioned earlier, they will not accept a refinance or a lower payment plan. Since they won't and I can't afford the payment as it is now, I don't see where I have a choice. I'm actually banking on the possibility that after the repo and sale, they will accept a payment plan that I can afford to pay off the deficiency. Believe me, I don't like the idea, but I can't pay the note as it is. I would much prefer they accept a payment plan that I can afford & let me keep the vehicle until paid, but they won't.

Ken

[hearr]

OK lets talk repo's.... not that I want to know, but I just can't help but wonder why or how they let you get so upside-down on your loan that is a large amount for a vehicle that is six years old. But you are realistic on what it will probably sell for.

I was able to finance such a large amount, well quite frankly because I had excellent credit at the time. What has happened since then is that 2 years ago I received a not-so-good diagnosis from a Doctor. Since then and because of treatments over the past 2 years, I have gotten behind & now can't catch up. That's how it happened.
I'm not really sure why, but I feel a sense of obligation to my creditors and would rather do the right thing & pay off what I owe. But it seems that some would rather harrass me instead of working with me & eventually getting all of their money instead of a fraction of it.

Ken