Going broke How do I get out of a tractor/trailer that I own?

Going broke. How do I get out of a tractor/ trailer I own ( several loans out on them). ?

 

Go talk to the bank, tell them youre liable to go bankrupt but dont want them to lose their investments on you. see if you can "short sale" and carry a loan on the difference or if you can bring the units back [if from a dealer or lease outfit] and walk away.

I was standing on a neighbors porch when he got out of a lease to own in about 3 mins. Said i got hurt, cant pay for the truck anymore, where do you want me to bring it.. And flaberghasted the woman on the phone gave an address. Getting it back beats paying repo man. His credit was already shot so whatever hit didnt matter to him.

 

I hate to hear you are going broke. Have you tried a different company that uses power only units to haul their loads.

 

You sell them for enough to pay the loan off.

If that’s not possible, then ask the bank where they want them brought to. A voluntary repo is better than the alternative.

 

Voluntary repo may help you feel better about yourself but it has the same credit effect as a standard repo and you still own any deficiency balance. How do you think a voluntary repo is better?

 

You should look at your state bankruptcy laws and how much or how little protection you have. Some state your house is safe 100% some you can have house equity of $150,000 before they can force the sale. So you could have house worth $200,000 but you still owe $51,000 so you only have $149,000 profit on the house. They couldn't touch you house if your state has $150,000 home value limit. You can't have car worth more then maybe $3,000 every state is different. IRA and 401k retirement money is safe, that can't touch that. If you got credit cards that have not been use in like 1 year or something you and wipe everything out. You can't go on credit card spending spree and wipe them out. It's not a bad option if you have a lot of loans. You got say $100,000+ you can wipe it out and start over clean.

 

Well for one, you will not be hit with a huge repo charge.
You stated several loans on them, what does that mean.
personally before I let them get repoed, I would take a hard look at my business model and do what ever it takes to make the payments, even if I had to stay in a different part of the country to run, for a few months.

 

A turned in tractor has a much higher resale on the dealers lot, than does a run to the ground, damaged repo truck that is captured on the other side of the country and sold at the nearest auction house as is/ where is less recovery, transport and auctioneer fees.

Take what you owe on the note, subtract the lenders recouped price and the difference is what you will face at collections. Maybe he can actually pay off a $5000 difference and save his credit. Or if not he goes to bankruptcy for the deficit. It is much better to face the court over 5k with an "i did everything i could to make it right" story than over 50k and "i did everything i could to evade authorities."

Whatever amount you discharge in bankruptcy is also taxed as a gain to you on a 1099misc [iirc] the following year as income. So you dont want to be discharging big debts. If youre gonna go under and have any assets at all to lose, you want to minimize what is owed.

And then there is just the plain old virtue of it being the honest, right thing to do. If you cant pay, bring it back in good shape and help the party you wronged.

 

Truckers may not be the best source of financial advice.

 

Chapter 7 exemptions by state is what the OP needs to look up. Every state is different. It is true 401k is fully exempt.