Finance company is suing me

Very expensive lesson learned. Call the creditors and work out something for the balance.

 

Unless you are a multi million dollar corporation, you sign a personal guarantee on any loan you take out for the company.

The law also says you are liable for any difference in what you owed and what they sold the truck for.

The finance company is completely within their rights and a judge will rule it their favor. Only thing you can hope for is to contact the finance company as see if you can work out a settlement. They will likely settle with you for less than you owe, just make sure you get in writing that the debt is settled.

Also, your credit rating is in the toilet and will be for at least 5 years.

 

Rub it in rub it in.

 

Also, when they do settle with you, to add insult to injury, you will have to pay taxes on any amount they knock off your original amount. They will 1099 you on it.

 

I still don't know how much money the OP is down. If it is less than $10k, the OP may want to try to work out a payment plan. If the amount is 10's of thousands AND the OP has no assets like a home, he might consider moving to a debtor friendly state like Texas. In Texas, out of state judgements can't be enforced by garnishing your wages or bank account. His home state would have worthless judgements that would not be enforceable. Basically the OP could move to Texas and start all over.

I'm certainly not a lawyer and certainly not qualified to give legal advice. I have read the post twice, and still don't how much money we are talking about. If the amount is insurmountable and the OP has no assets like a home that could be seized, moving out of state is an option.

If I did move out of state to a debtor friendly state like Texas, I would open a checking account, but just keep a few hundred dollars in it. Keep the majority of your money in cash. Don't keep any more money in your bank account that you could afford to lose. Because there is a possibility that an out of state creditor or bank could illegally freeze your new checking account. It is illegal and they know it, but they do it anyway just to dog you. You would have to hire an attorney just to unfreeze your bank account. What you need to do is to keep small amount in your new checking account(no more money than you could afford to lose). You would need to cash your payroll checks and pay big bills with money orders/cashiers checks. In 6 or 7 years, the judgements will fall off your credit report and you will have credit again.

If you stay in your home state and owe 10's of thousands of dollars, you will spend the next decade dealing with garnishments, lawyers coming after you, hostile bill collectors, certified letters, never ending phone calls from hostile bill collectors, etc.

Or, you could move out of state and start fresh again

 

He does legally and ethically owe the money. Just because you got screwed on a truck, doesn’t give you the right to in turn screw the finance company. You personally signed an agreement with the finance company, you failed to meet the terms you agreed to.

All that being said, if you don’t have the money, you don’t have the money. If you contact them before court, I’m sure they will work with you. Other than that, about your only other option is bankruptcy.

Let this be an example of why you shouldn’t start a trucking outfit on a shoestring. It can ruin your whole life.

 

I'd like to know what the "Nightmare" was on this truck to put him in this situation.

To me..It appears the OP is Bad with money, Even if he needed a New Motor- Being in business for yourself should NOT,I Repeat NOT allow you to fall apart due to a mechanical issue- Its Nickles and Pence over a short period of time.

Unless Customers owe you Money that are Late- You should NOT be in a financial quandrum, Unless,Of Course,You have personal Bills within your family draining all your money.

Point is.....ANOTHER owner-op Failure Story, Tired of hearing about it.

 

If you can prove it's their fault your truck was down an inordinate amount of time which caused you financial strife then take it to court. Otherwise, try to work something out and/or make sure you work on a 1099 for the next 7-10 years.

 

Anyone else see the hilarity in this. Op owes the lender money due to complications with the truck being a POS and then when it's finally fixed they repo the OP's only method for repaying the lender. I would be be sueing the lender and whoever couldn't repair a truck in a timely manner.

 

If your the sole person listed in the s corp, I believe your not going to lose ant personal property, but your probably going to get stuck for difference, and no gap insurance is not going to help you, should have tossed a flare into it.