Legal Question in Credit and Debt Law in Virginia
credit
I have two cars that are not paid off. I am currently battling with negative equity on both of them and I'm also getting out of the military in May to go to Puerto Rico to begin med school in September. I have a wife and son. I cannot afford to keep these cars since I wont have the money to continue paying them and getting a loan to pay off any difference if I do sell them would not be an option since I don't want any more debt. What can I do? How can I turn them in withot getting screwed over on my credit? If my credit does get hurt, for how long and how can I fix it?
1 Answer from Attorneys
Re: credit
If you turn the vehicles back to the creditors, they will then auction them and you very likely will owe what's called a deficiency judgment on each of them.(Difference between auction price received and loan balance still owed.)
You could also attempt to sell the cars and remit the proceeds of the sales to the creditors, however, you would undoutedly still owe them money.
If in the course of whatever you do(or don't do)with respect to these two vehicles, your credit is damaged as a result, it'll take around seven years or so (roughly) to get it repaired.
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