I have a auto loan and a auto lease and Im unable to make both the payments anymore. What happens if I default on the auto loan what happens I have good credit but I don't know the process if I default what happens after If I turn the car in and say I can't pay anymore what happens I know it will effect my credit what else.

What happens if I default on the lease instead my main question which has less issues or if I had to default on the lease or the loan which one should I default. I don't know what to do.

Defaulting on either will have a major negative effect on your credit rating. In addition, if you default on the loan, and either turn in the car or they repo it, they will sell the car at auction and then go after you for the difference. On the lease, they will take back the car then sue you for the balance of the lease.

On the lease I would see if the lease is assignable. Maybe you can find someone willing to take it over.

On the loan, I would try to sell the car yourself. Even if you don't get enough to cover the loan balance, you will probably get more then an auction. Or maybe you can get someone to just take over those payments.

If you had to default on just one, I would choose the lease. Because you never really owned the car and they can take it back, they may be more willing to cancel the lease.

The only way to walk away from this it filing bankruptcy on everything. I just can't afford both car payments I can pay all my other bills, its to tight with both car payments I don't think I should file bankruptcy because I can pay all my bills it just to tight with 900 dollars in payments a month for auto's. Im just am confused I see people file bankruptcy and there getting loans six months later and I don't really see any incentive to struggle when I see people file bankruptcy and move on like nothing happened.

Basically if I default they can sue me for the difference on what they sell the car for. I was upside down on both the lease and auto loan if that makes a difference.

Both the lease and the loan are contracts. You agreed to pay. If you default on the contract, you still owe what you agreed to pay. On the lease, there is the caveat that you agreed to pay for the use of the vehicle. If you turn the vehicle in you are no longer using it. The problem is that the dealer can no longer get the same amount for the car as you promised to pay.