Location: California.
I took out an auto loan of ~12k 3 years ago, from a local credit union. My first car- the loan comes out to 5 or 6k more than it would be worth if bought outright… But I was very poor and needed a car. I put down the $2500 that I had, and agreed to a low monthly rate of $200 until paid off.
Now, I’ve gone 180 days without paying. I have been dodging their calls, and ignoring the issue (stupid, yes). I called last week and was told I can pay $1500 of missed payments and late fees. I thought “thank god! I can fix this!” It took me a week to get that $1500 together.
When I called back 7 days later to pay, they insisted on a lump sum payment of $7500 (the remainder I owe, plus repo fees). I spoke with a supervisor to try and understand what changed in those 7 days (I’d established my intent to pay within the week). She she didn’t give me a clear answer. I asked what outside collection agency they are working with, as I’ve gotten calls and texts from people NOT affiliated with the credit union, but she said they are the sole organization coming after me for the payments.
The loaners recommended voluntary repo.
Option 1: Repo. My guess is it’ll sell for 2k max. I’ll be left with a debt of thousands of dollars, once I receive the deficiency balance, and no car. I’ve tried to research what the process of paying a deficiency balance off over time looks like, but I’m not really sure. some people say the bank stopped bothering after a couple years. some people say the bank sued them/garnished wages.
OR I can file for bankruptcy, and keep the car. That feels drastic, when I have less than 25k in total debt.
OR, is there some third option?
Your help in this matter is so appreciated 🙏🏻 I take full accountability for making some dumb decisions and ignoring my responsibility to pay for the car… just want to figure out how to best move forward here.