If my car is repossessed do I still owe money to repay the loan?

[anonymous]

I owe 18,ooo on my car. I pay $549.00 a month. I have been out of work over a year and can no longer pay for the car or any of my bills. I stopped paying my bills in February 2011. My next car payment is Nov 19. I can not pay it. Eventually they will come to repo it. My question is when they repo it do I still need to pay this loan. If i cant pay car payment how in the world can I still pay off this loan.

[Bankruptcy Helper]

If you do not make your car payments at some point, you are right, the lender will come and repossess your car. In most cases, a repossessed car is auctioned off and after the car is sold the amount the car is purchased for is applied to the balance of your car loan.

Are you responsible for the difference? Yes, the bank or lender wants their money back that they loaned to you to make the car purchase.

What options do you have?

1. Take out a loan for the amount you owe. This can be done through either a personal loan or a home equity loan. This will allow you to pay the car lender in one payment and make installment payments for the personal loan.
2. Avoid repossession. There are some programs available for qualifying buyers which may allow them to either refinance their loan or turn the car back in to the manufacturer.
3. File bankruptcy. If you cannot get the loan refinanced or you do not qualify for a personal loan, you may consider filing bankruptcy. Talk to a bankruptcy lawyer before your consider this option.