unusual repo question

[jh112]

What is the name of your state? PA
My neighbors son is going into the Army in March. He has a car on which he still owes about $10000. B/c of depreciation he would only be able to get about $4000 for it. he has tried to sell it but no one is going to pay even close to his owing price b/c it isn't worth that anymore. He DOES NOT want to NOT pay the money owed, and understands that if he gives the car back, that he will owe the difference between the loan value and the amout from auction. His question is can "they" attach his Arrmy wages for a payment on that, which would suit him? That way he would know the payment on the difference was made every month, or do "they" ask for a whole amount all at once?Understand, he does want to pay. But he has been told already that he will go to Germany after Basic and school. Thanks in advance.

 

[crusheroz]

So why cant he start an allotment to pay the payment? Also he can ship the car over to Germany when he is done with Basic training and AIT.

 

[mykoleary]

Also he can ship the car over to Germany when he is done with Basic training and AIT.

Best idea yet!!! Let them try to repro the truck when it's in Germany!

 

[racer72]

The US Army will not transport financed cars to other countries. Only those with clear titles can be shipped. The only real exception are those financed through the Armed Forces Credit Union and they can repossess cars in Germany. Yes, his Army wages can be garnished, in fact, members of the armed forces (except those in combat) are some of the easiest folks to garnish. And that person can be just about anywhere in the world, all the judgement holder has to do is deliver the writ of garnishment to the military payroll office of ANY US military installation and bingo, checks are cut on the 15th and 30th.

My suggestion. For the first 9 months or so of GI Joe's military stint, he is going to need very little cash for anything, he will be housed, he will be fed, and all of his medical needs will be supplied. Keep enough out for the basics not supplied and pay off the car as quickly as possible. By paying down the principle he will be surprised how fast a car can be paid off. I paid off a $3500 car loan in only 3 months back in 1976 that way. It was tough but the rewards were sweet.

 

[crusheroz]

Actually you can send your POV overseas as long as the bank gives you permission to do so. But of course you have to setup direct payment to be able to do that. He needs to setup an allotment to pay his car payment, and if he wants to ship it over to Germany, he needs to ask the bank and get the proper paper needed to do so.

 

[jh112]

I thank you very much for your replies. They were very informative! And the young man in question says thanks very much, also. He has appreciated the help.

 

[bigun]

He needs to read up on his rights under the Servicemembers Civil Relief Act that President Bush signed in Dec.
For example, they can't charge him more than 6% interest on the deficiency.


Forgives the payment of interest in excess of six percent a year for obligations or liabilities incurred by the servicemember, or jointly by the servicemember and his or her spouse, before the servicemember entered military service. Requires the servicemember to provide written notice to the creditor in order to receive such interest limitation.

http://vote.military.com/military/w...homas.loc.gov/cgi-bin/bdquery/z?d108:h.r.100:

Click text of legislation and then, #6 for the final bill.

 

[bigun]

Well, that link won't work for some reason.

Try this one. It's a thread from another site discussing this and the 2nd poster provides a ton of info and you can link to the actual bill from that site.

http://www.creditboards.com/phpBB2/viewtopic.php?t=20385

 

[jh112]

Thank you, bigun. This will be very helpful to him. For all of his 21 years I have looked at this young man as another son to me. his Mom worries so much about him .... They give you, also, and "thank you" and ask that I say they appreciate your help very much.