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Mon Jun 19, 2017, 09:01 AM

The Car Was Repossessed, but the Debt Remains

Source: New York Times

The Car Was Repossessed, but the Debt Remains

By JESSICA SILVER-GREENBERG and MICHAEL CORKERY JUNE 18, 2017

More than a decade after Yvette Harris’s 1997 Mitsubishi was repossessed, she is still paying off her car loan.

She has no choice. Her auto lender took her to court and won the right to seize a portion of her income to cover her debt. The lender has so far been able to garnish $4,133 from her paychecks — a drain that at one point forced Ms. Harris, a single mother who lives in the Bronx, to go on public assistance to support her two sons.

“How am I still paying for a car I don’t have?” she asked.

For millions of Americans like Ms. Harris who have shaky credit and had to turn to subprime auto loans with high interest rates and hefty fees to buy a car, there is no getting out.

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The reason: Unable to recover the balance of the loans by repossessing and reselling the cars, some subprime lenders are aggressively suing borrowers to collect what remains — even 13 years later.

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Read more: https://www.nytimes.com/2017/06/18/business/dealbook/car-loan-subprime.html

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Reply The Car Was Repossessed, but the Debt Remains (Original post)
Eugene Jun 2017 OP
left-of-center2012 Jun 2017 #1
Not Ruth Jun 2017 #2

Response to Eugene (Original post)

Mon Jun 19, 2017, 09:15 AM

1. Can she not file bankruptcy?

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Response to Eugene (Original post)

Mon Jun 19, 2017, 09:40 AM

2. Might not be worth declaring bankruptcy when the payments are about $413 a year

 

Depending on her current situation.

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