Tuesday, June 29th, 2010

My son has defaulted on a credit agreement on a vehicle what are his options to resolve this debt?

credit agreement
phil p asked:


My son has defaulted on a credit agreement on a vehicle with Black Horse Finance, they have passed the debt to a debt recovery company who said they would recover the van and sell at auction, what the van makes at auction would be used against the outstanding balance and the remainder would be paid by a payment agreement. The debt recovery company have now said that they will not recover the van because it wont start and drive and have now passed the debt back to Black Horse. Is this the correct way to do this and what are my son’s options to resolve this debt.

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5 Responses to “My son has defaulted on a credit agreement on a vehicle what are his options to resolve this debt?”

Holly Says:
June 30th, 2010 at 2:38 am

Dear i suggest you
it will help you .there are many other solutions keep using answers.yahoo.com

Common Sense Says:
July 1st, 2010 at 6:38 pm

He has 2 options:
Pay or file for bankruptcy. That’s it.

Natasha Says:
July 4th, 2010 at 4:16 am

His best option would be to catch up on the payments if he can. If he can not catch up quickly, there is a chance that Black Horse would allow some sort of alternative repayment schedule.

He’ll have to call them up and talk to them and see what kind of leeway they can offer.

b Says:
July 6th, 2010 at 4:32 pm

pay the debt,

Credit Trauma Says:
July 8th, 2010 at 11:40 pm

You son can offer to do a voluntary repossession and give the van back to the lender. Basically the same thing as the debt recovery company repossessing the van, but it’s going to be sold for way less than market value if it’s not running and the deficiency balance is going to be that much greater. Is there any way he can get it running again, then turn it in?

Pretty much either way he’s going to be responsible for the deficiency balance. If he ignores their attempts to collect that amount, if it’s large enough, the lender will take him to court and get a judgment against him and that is going to hit his credit even harder, and the debt will accrue even more interest.

Best bet is to contact the lender and work out some kind of payment arrangement that your son can live with. The lender may agree to stop all interest from accruing in exchange for regular monthly payments. That’s probably the best he can expect in these circumstances.

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