Car repo - can one ask for reinstatement? (asking for my sorta gf)

Rock Chalk Jayhawk · August 20, 2015

When a car is repossessed, I understand that typically the debter can generally request a redemption, in which the total value of the loan (plus extra fees, penalties, etc.) is paid as a lump sum. Question: do loan companies generally prefer this method, or are they just as willing to accept reinstatements, in which the loan debt is brought into good standing. I know that this can vary by state. My sorta gf got her car repossessed this morning, and she is freaking out. She thinks she can scrounge around $1500 to reinstate the loan.

Also, what sort of extra crap has to be filled out? Are there extra tax forms and tax liabilities?

gwchem · August 20, 2015

Buddy, for your sake, I hope she's hot enough to make the cover of hustler.

baddomes · August 20, 2015

So why did she stop paying her loan? And why does she have $1,500 now?

The "Loan Company" is going to ask her this. She should tell her answers to us here so we can provide constructive criticism.

LeoLeo99 · August 20, 2015

What tax issues could there be? I had a car repo'd about 18 years ago. No tax implications. The IRS has no bearing on a loan default.

The loan company wants money. I don't know that there's a one size fits all answer to your question. The loan company did not want to repo my car, they wanted money and wanted me to keep the car and keep paying the loan off. Since your gf defaulted on her load, her credit rating will go down quite a bit.

After the repo, I declared bankruptcy. My credit is score today is 817. Just bought a car with zero down and a $30k loan at 0%APR. Your gf needs to get her finances in order.

jhbangas · August 21, 2015

Where did the $1500 come from? And how much does she owe?

Rock Chalk Jayhawk · August 21, 2015

She got it sorted out. She's an extremely ditzy, sheltered, naive girl who didn't realize that she had to pay money each month (seriously). She's a good time, though.

SmiterOfPv1x · May 4, 2017

What tax issues could there be? I had a car repo'd about 18 years ago. No tax implications. The IRS has no bearing on a loan default.

The loan company wants money. I don't know that there's a one size fits all answer to your question. The loan company did not want to repo my car, they wanted money and wanted me to keep the car and keep paying the loan off. Since your gf defaulted on her load, her credit rating will go down quite a bit.

After the repo, I declared bankruptcy. My credit is score today is 817. Just bought a car with zero down and a $30k loan at 0%APR. Your gf needs to get her finances in order.

Yeah we're all mostly smarter with our finances than in our youth. I had a car "repo'd" once. Strangest thing I've ever encountered. My wife went to the store to pick up a gallon of milk. Came back and asked me "where'd you move your car"? I told her I didn't, looked out, and it was gone. I immediately called the police and told them my car was stolen to which they said "no, this was called in as a repo". I told them that it was not, I owned it outright and had the dang title. I had argue with them for 15 minutes to get them to send someone out to take a report on it. They still weren't believing until I produced the outright title.

Pretty smart move by the car thief, ill grudgingly admit. It was a newer model car that I had paid off early so yeah it looked like there was probably still a loan on it. That confusion allowed them to get out of town before it could be called out on a BOLO. Found it the next day 70 miles away involved in a wreck. The worst part was once I'd paid it off I dropped the full coverage on it, like a month or two prior.

SmiterOfPv1x · May 4, 2017

She got it sorted out. She's an extremely ditzy, sheltered, naive girl who didn't realize that she had to pay money each month (seriously). She's a good time, though. ;)

Btdt. Enjoy it while it lasts, and hopefully doesn't end as bad as it always has for me:)