Q: My car was repossessed. My finance company will not allow me to pay the prior amount due to reinstate. How do I resolve?
A: You have a right to sue the finance company for breach of your contract and violating your rights. You can also call the office of the Attorney General for Virginia and file a complaint.
They have the right to hold out for the whole amount, like apparently they are doing.
Your only remedy for that specific car is to very quickly file a Chapter 13 bankrutpcy and that would get the car back and get you three years, or five, to pay the car off. Since that's not a very good choice by itself, you need to look at your bigger picture. Why is it that you couldn't afford the car payment? Did you have a bad loan to begin with. Is your credit already wrecked.
If you do nothing, they will sell the car, for barely enough to pay the repo costs and legal fees, and they will sue you for soemthing close to the whole amount. Once they get a judgment, they can take up to ten years to try to garnish you for it, am interest, and legal fees, will continue to grow.
If that's what you were looking at, and if you had a high interest car loan already because of dings on your credit, then it's time to talk to a bankrutpcy lawyer about clearing your debts and getting you back to good credit. Then you need to figure out how to get a junker or a borrowed car or something that can get you around for a coupled years until the bankrutpcy has you back to good credit.
(I see that Mr Maloof is putting a different interpretation on what you have said; so one or the other of us misunderstands what has happened.)
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