My 23yr.old son has had his car repossessed. He has no assets and works as a construction helper making maybe $300. Week off the books. After deduction $2,000. From the auction price of the car for towing and fees, he still owes $10,000. What are his options? Does the credit union have any recourse? They have threatened legal action.

How did a 23 year old without a job qualify to buy a car in the price range of $15-20K or more? If the answer is that you co-signed, then the credit union will be coming after you. From their perspective, you give them the best odds of getting their money.

If you did not co-sign, they would normally go after his assets. Since he has none, they will get a legal judgment against him and wait for him to get assets. When he does or when he gets a job on the books, they will claim the assets or garnish his wages. Their other option is to turn it over to a collection agency who will harass him, but as long as he has nothing for them to attach, they can't really do anything.

The one thing that he won't have any time soon is credit.

Great way to start adult life.

With that large an unpaid balance, you can almost be certain that they will sue him.

Some lenders are more aggressive than others.

If there are no assets, and no income that can be garnished, he will suffer only the negative information on his credit bureaus for now. If he becomes employed, or obtains some substantial assets, before the statute runs out, they will attempt to recover their losses.