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    ande6025's Avatar
    ande6025 Posts: 1, Reputation: 1
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    #1

    Jan 7, 2009, 09:00 AM
    Settling car repo debt for less.
    Hello we had our car repposesed in dec of 05. We are now trying to rebuild our credit and want to settle the debt. They say we owe 11,500.00. I am sure a lot of it is interest and such. Does anyone have any experience dealing with gmac. It went to a collection company who never contacted us and now it is back with gmac. I want to put this behind us so we can buy a house. It is the only thing holding us back. Thank You
    JudyKayTee's Avatar
    JudyKayTee Posts: 46,503, Reputation: 4600
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    #2

    Jan 7, 2009, 09:12 AM
    Quote Originally Posted by ande6025 View Post
    Hello we had our car repposesed in dec of 05. We are now trying to rebuild our credit and want to settle the debt. They say we owe 11,500.00. I am sure a lot of it is interest and such. Does anyone have any experience dealing with gmac. It went to a collection company who never contacted us and now it is back with gmac. I want to put this behind us so we can buy a house. It is the only thing holding us back. Thank You


    No two situations are ever the same. You could try to settle with them for another amount. Whatever happens this bad debt will stay on your credit report for at least seven years, ten (depending on the State) if they obtain a Judgment against you and another ten if the Judgment is renewed.

    You do owe interest; they are also going to ask for Attorney/legal fees.

    Your best bet is to offer a settlement. The problem may be if you didn't meet your original payments they aren't sure you are going to live up to the terms of a second payment schedule, particularly if the vehicle was repossed and not surrendered.

    But you never know unless you try.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692
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    #3

    Jan 7, 2009, 09:56 AM

    Remember they have no reason to settle for less, all they have is time to get the money and will keep getting interest on it.

    Often after a car is repoed you actually end up owing more than you did with the car.

    So while they don't have to settle for less, if you have the actual cash in hand to pay them, they may accept it, but if you are talking payments, most likely they will want the full amount plus
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