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Should you pay on a repossessed car?

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    Should you pay on a repossessed car?

    Long, long story short: I cosigned on an auto loan of an ex back in 2014. The car was since repossessed and sold by the bank, leaving a $6,300 bill in collections (on both of our credit reports).

    Here's the big question: if the car is already the property of someone else. Is this something I should even worry about? I'm attempting to pay off all of our debt before getting married at the end of 2021. Should I even pay this off? How much is it going to hold me back financially?

    #2
    The difference needs to be paid. If your ex doesn't they will come after you for it.

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      #3
      A debt is a debt. The fact that the car got repossessed doesn't change a thing. You borrowed the money. You are legally obligated to repay the money.
      Steve

      * Despite the high cost of living, it remains very popular.
      * Why should I pay for my daughter's education when she already knows everything?
      * There are no shortcuts to anywhere worth going.

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        #4
        Originally posted by disneysteve View Post
        A debt is a debt. The fact that the car got repossessed doesn't change a thing. You borrowed the money. You are legally obligated to repay the money.
        How ever you may only be legally obligated to pay for a short time longer. Id research the laws and determine the amount of money owed and the amount of time the company can still come after you for the money.

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          #5
          As others have said, yes! A debt is a debt is a debt - whether you still have the car or not. Unfortunately

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            #6
            You should pay it. But before you do I'd do some research. Find out the laws where you live. Find out who holds the debt. Research the possibility of settling for a lesser amount. The collection agency bought that debt for pennies on the dollar. Get everything in writing. Make sure this drops off your credit report once it has been settled.

            Do you have any contact with your EX? If I understand correctly, there is a $6300 bill on BOTH your credit reports for a total of $12,600? Or is it $6300 total? You might have a problem getting him to pay. You were the cosigner, so you might be on the hook for everything if the EX won't pony up.
            Brian

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              #7
              Originally posted by bjl584 View Post
              You were the cosigner, so you might be on the hook for everything if the EX won't pony up.
              That's exactly what co-signing means, and why you should never do it.

              When you co-sign, it is exactly the same as if you personally borrowed the money. It is YOUR debt and needs to be treated as such.
              Steve

              * Despite the high cost of living, it remains very popular.
              * Why should I pay for my daughter's education when she already knows everything?
              * There are no shortcuts to anywhere worth going.

              Comment


                #8
                Originally posted by disneysteve View Post
                That's exactly what co-signing means, and why you should never do it.

                When you co-sign, it is exactly the same as if you personally borrowed the money. It is YOUR debt and needs to be treated as such.
                Exactly. When I bought my first car my parents made it clear they would not be co-signing on a loan for me and I needed to get it myself. Dont ever co-sign on something unless you are okay with paying the debt back yourself.

                For OP situation depending on when the car was repossessed Id look at all my options in order to settle the debt/possibly not pay it back at all. It all hinges on what you feel is the morally correct path to take.

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                  #9
                  Originally posted by bjl584 View Post
                  Research the possibility of settling for a lesser amount.

                  Do you have any contact with your EX? If I understand correctly, there is a $6300 bill on BOTH your credit reports for a total of $12,600? Or is it $6300 total?
                  First - thanks to everyone for your replies. I understand it is, in fact, a piece of MY debt as well (as frustrating as that is).

                  Second - I do think I'm going to call the collection agency and see about a settlement/payment plan. It is $6,300 in total and (as far as I know) it is on his credit report as well. I don't have contact with him (it was a rather abusive relationship so I'm not super open to contacting him at all).

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