[nasdpaul]

After my divorce I couldn't afford the 600 dollar a month car payment so I turned the car into Toyota. Toyota then sold the car at an auction. The car was sold for $12,000. When I turn the car in I owed $22,000. Now Toyota has put a collection agency on me for the remaining balance of $11,000. I offered them a payment of $100 a month but they would except anything under $300 dollar a month. What can I do?

[RichardBondMan]

First, I would get proof that the vehicle was sold at auction for what they said it was, then, if correct, offer the collection agency again $100. A month for xx number of months, if they accept your offer, get the deal in writing, payoff the balance, obtain a "paid in full" statement from the collection agency, keep those docs the rest of your life. Keep in mind that if the unpaid balance was say #11,000. As you stated, then the collection agency probably bought the debt from the lender that wrote if off as a bad debt for pennies on the dollar. Everything they collect over what they paid for the debt is pure profit for them minus, of course, their expenses, etc to collect and maintain the debt. But you got to get the deal in writing. It's a must!!

[ScottGem]

Sorry, but you are probably stuck. You should have never just turned in the car. You don't say how long ago this happened, so its not clear whether Toyota sold the debt or just turned it over to a collector. Either way is mostly immaterial to you. The collector has the right to collect and can sue you and obtain a judgement against you for the debt.

So you have to try and negotiate a settlement that you both can live with.