Whatt o do if I owe a bank $13,000 for a repoed truck?
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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 12 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.
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