Whatt o do if I owe a bank $13,000 for a repoed truck?

Get Legal Help Today

secured lock Secured with SHA-256 Encryption

Whatt o do if I owe a bank $13,000 for a repoed truck?

I have no money to pay them. I have been to court several times to set up payment plans that I never kept up with. At this point I believe they want to put me in jail. What can I do to avoid going to jail? How can I get the amount lowered? I would like to start by giving a lump sum from my tax refund and then start a payment plan that I can afford. Would that get me out of this even though I’ve made promise to pay many times in the past and have not followed through?

Asked on December 19, 2012 under Bankruptcy Law, Massachusetts

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The good news is, you should not suffer criminal consequences or go to jail--it is not a crime to be unable to pay a debt, so long as the debt (the truck financing) was taken out in good faith, using honest information. It is generally only a crime if you lied on the loan application or never had an intention to repay.

The bad news is, while you can and should approach the lender about a payment plan, they don't have to accept one--a creditor who you failed to pay is entitled to insist on payment in full. Given your history of having set up several payment plans which you failed to honor, it is unlikely they will trust you with a new plan, and a court will not require them to do. They may instead choose to try to collect by garnishing your wages, levying on your bank account, executing on (having the sherriff or constable seize and sell) your personal property, or putting a lien on any real estate you owe. If you legitimately owe the money and have repeatedly failed to pay it, you have few, if any options other than this: you may need to consider filing bankruptcy to discharge your debts. Bankruptcy, though, is a complicated topic: you should consult with a bankruptcy attorney before deciding what to do.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption