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  1. #1

    Question Settling a Car Loan Debt After Default

    I bought a car in 2016 and it was financed with Capital One Auto. I made the monthly payments always on time for the first year, but then unfortunately I had a big court case involving a divorce and 99% of my finances went to court fees, attorney fees, etc and leaving me with little to no money for bills but the essentials.

    It has now been about 5 months since my last payment and Capital One has sent me an offer to settle the loan debt. The amount owed on the loan is $18,000 and the settlement offer is $9000 Unfortunately after all I have been through, there is now way I could pay the past due amount owed on the loan to bring it current and then make the monthly payments.

    So my questions are..... Could I sell the vehicle and pay the Settlement Offer in full? If I settle and pay the amount they are asking, will I get the Title for the vehicle? How much would doing a settlement hurt my credit score as opposed to it getting Repossessed?

    Thanks in advance for any help!

  2. #2
    Join Date
    Oct 2016
    Posts
    4,301

    Default Re: Auto Loan Advice

    The first question would have to asked of the lender.

    I don't see how you wouldn't.

    It will show as a $9000 default.

    And you may owe taxes on the $9000.

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