[mmknutzen]

My question involves an auto loan or repossession in the State of: California

Have tried every venue (refi; trade; sell), but bottom line, loan is worth more than car (trade value is 7k at best and loan amt is $26k). very upside down. we just cleaned up our credit (no more debt - the only good news!), but the credit scores are still low which makes getting a loan these days thoroughly difficult. what makes matters worse is that this car is a lemon (seriously! - went thru lemon law attorney and company settled @ 3K, 1k went to lawyer - which does not cover the 8k engine the car needs)! my concern is the obvious A) can't afford car (not just $ wise but safety wise) AND B) how this affects husband (he is NOT on the auto loan) because we are in a 'community property state' ie. will husbands wages be garnished and will it effect his credit? I am willing to go forward with the surrender and will take the hit with the judgement/decrease in credit score and of course own up to the deficiency balance. i'm just worried its going to hit us BOTH rather than just myself.

Any advice out there? It seems everywhere i turn (because of the economy) repo's and foreclosures are almost the norm. How does this affect people like me/us?

[Betty3]

In community property states such as California, debts assumed within the marriage are joint obligations of both spouses, even if only one spouse is party to the contract.