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  1. #1
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    Mar 2014
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    Default How to Settle the Debt After Defaulting on a Car Loan, to Clear the Title

    My question involves an auto loan or repossession in the State of: Michigan
    In 2005, I purchased a brand new vehicle. In 2007 I had come into some employment issues that made it impossible for me to maintain the payments on this vehicle. Within that time period I had moved to Tennessee and changed just about everything in as far as my contact number, place of employment, address, etc. The second I could not make the payments on this vehicle I stopped driving it. I did not feel it was right because I did not earn it. This vehicle has sat in a garage for the past 6 years and I start it and let it run in park to keep it from completely drying out. I have heard nothing from anybody in regards to retrieving the vehicle or even collecting the balance of approx. $20,000. The original title holder has written it off and now I don't know who to contact to make this right. I must add that all of my new information is and has been on my credit report. This is not a sob story, this is completely my fault and I only have myself to blame and should have acted sooner. If you have any advise or know of a similar situation please reply.

    Thank you,
    Mark

  2. #2
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    Sep 2011
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    Default Re: How to Settle the Debt After Defaulting on a Car Loan, to Clear the Title

    Or maybe you did not title it because then it could be traced. Contact your lender and make payment arrangements.

  3. #3
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    Mar 2014
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    Default Re: How to Settle the Debt After Defaulting on a Car Loan, to Clear the Title

    Quote Quoting Disagreeable
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    Or maybe you did not title it because then it could be traced. Contact your lender and make payment arrangements.
    Wow, such intellect and insight, and thank you for the sentence at the end explaining that you were being a jerk off, just encased I didn't get the fact that you were being a jerk off. You are so smart and everyone else is so stupid. If you are just going to be a douche on this forum then why even do it? You don't think I tried calling them? The debt has been sold 3 times now and I have ran out of resources considering the fact that the second agency is no longer in business. So maybe you don't know everything and you are just a douche.

  4. #4
    Join Date
    Oct 2006
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    16,474

    Default Re: How to Settle the Debt After Defaulting on a Car Loan, to Clear the Title

    Quote Quoting mark6860
    View Post
    My question involves an auto loan or repossession in the State of: Michigan
    In 2005, I purchased a brand new vehicle. In 2007 I had come into some employment issues that made it impossible for me to maintain the payments on this vehicle. Within that time period I had moved to Tennessee and changed just about everything in as far as my contact number, place of employment, address, etc. The second I could not make the payments on this vehicle I stopped driving it. I did not feel it was right because I did not earn it. This vehicle has sat in a garage for the past 6 years and I start it and let it run in park to keep it from completely drying out. I have heard nothing from anybody in regards to retrieving the vehicle or even collecting the balance of approx. $20,000. The original title holder has written it off and now I don't know who to contact to make this right. I must add that all of my new information is and has been on my credit report. This is not a sob story, this is completely my fault and I only have myself to blame and should have acted sooner. If you have any advise or know of a similar situation please reply.

    Thank you,
    Mark
    Did you receive a 1099-C for the balance due on the loan?...or did the IRS receive one and hold you responsible, tax-wise for the balance due? Does your credit report show a judgment against you?

  5. #5
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    Default Re: How to Settle the Debt After Defaulting on a Car Loan, to Clear the Title

    Quote Quoting llworking
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    Did you receive a 1099-C for the balance due on the loan?...or did the IRS receive one and hold you responsible, tax-wise for the balance due?
    Entirely irrelevant. A 1099-C does not clear a lien from the title.

    If the debt is listed on the OP's credit report, though, it would include contact information for the creditor. The free, official site for obtaining your credit report once per year is annualcreditreport.com.

  6. #6
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    Default Re: How to Settle the Debt After Defaulting on a Car Loan, to Clear the Title

    I'm not the deadbeat who is feeling guilty and is stuck with a car. You could of course contact the lien holder that is registered against the title.

  7. #7
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    Oct 2006
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    Default Re: How to Settle the Debt After Defaulting on a Car Loan, to Clear the Title

    Quote Quoting Mr. Knowitall
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    Entirely irrelevant. A 1099-C does not clear a lien from the title.

    If the debt is listed on the OP's credit report, though, it would include contact information for the creditor. The free, official site for obtaining your credit report once per year is annualcreditreport.com.
    That isn't why I asked the questions I asked.

  8. #8

    Default Re: How to Settle the Debt After Defaulting on a Car Loan, to Clear the Title

    It does not say a 1099 C was issued so the original lender most likely still has all rights. If a 1099 C had been issued then the loan would of been satisfied and the lien can be removed. The original lender may not want to work anything out with you because the loan has been charged off for so long. The lender may no longer be looking for the car but the information that the car was out for repo may still be listed with an agency. You can call the original lender and ask if a 1099 C has been issued. If they say no then you can ask if they will work something out with you but get it in writing because once you make a payment to them the statute of limitations starts over again. I suggest you consult an attorney in your area.

  9. #9
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    Default Re: How to Settle the Debt After Defaulting on a Car Loan, to Clear the Title

    You are confusing accounting for bad debts with relinquishment of rights. IRS reg's and GAAP cause the issuance of the 1099C, not the business choosing giving away rights to the vehicle. If accounting practice did not mandate the removal of such debts, they would be held in perpetuity as assets due the loan company and their financials misstated by debts unlikely to be collected. Consequently, the IRS requires a counter recognition of the write off by issuance of the 1099C. The issue here is what credit company owns the rights to the lien.




    Quote Quoting map0824
    View Post
    It does not say a 1099 C was issued so the original lender most likely still has all rights. If a 1099 C had been issued then the loan would of been satisfied and the lien can be removed. The original lender may not want to work anything out with you because the loan has been charged off for so long. The lender may no longer be looking for the car but the information that the car was out for repo may still be listed with an agency. You can call the original lender and ask if a 1099 C has been issued. If they say no then you can ask if they will work something out with you but get it in writing because once you make a payment to them the statute of limitations starts over again. I suggest you consult an attorney in your area.

  10. #10
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    Default Re: How to Settle the Debt After Defaulting on a Car Loan, to Clear the Title

    Quote Quoting llworking
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    That isn't why I asked the questions I asked.
    Are you going to explain why you asked an irrelevant question, or should we leave it at that?
    Quote Quoting map0824
    View Post
    It does not say a 1099 C was issued so the original lender most likely still has all rights. If a 1099 C had been issued then the loan would of been satisfied and the lien can be removed.
    That is not correct.

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