What can happen if I can’t pay my truck payment and the bank well not work with me?
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What can happen if I can’t pay my truck payment and the bank well not work with me?
What can I do?
Asked on January 22, 2016 under Bankruptcy Law, Wyoming
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 8 years ago | Contributor
They don't have to work with you--that's the first thing to bear in mind. Your financing agreement is a contract; you are bound to its terms, and they can enforce its terms against it. So they don't have to renegotiate your payments.
Your options:
1) Sell the truck and use the the proceeds to pay off the loan.
2) Default on the payments, then what happens next is in the bank's hands: they could repossesss the truck, or sue you, or both. (E.g. say you owe $20k and the truck is currently worth $14k; they could take the truck, the sue you for the extra $6k.)
3) You could try filing for bankruptcy, but the interplay of bankruptcy and a secured debt (a debt, like a vehicle loan, where they can reposses property if not paid) can be complex: you are advised to consult witha bankruptcy attorney to discuss in detail before filing.
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