I had a car repoed in 1999

Date: Tue, 09/05/2006 - 08:58

Submitted by anonymous
on Tue, 09/05/2006 - 08:58

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Total Replies: 2

I had a car repoed in 1999. I live in NC. Today I received a phone call from a debt collector stating that if I do not pay, they will return the account over to the original creditor who will then turn it into the IRS. They will then issue me a 1099 and I will have to pay taxes on it this year. I have never heard this before. Can they do this?

What happens after you experience a repossession is, the car is

What happens after you experience a repossession is, the car is sold at auction at a price that is usually far less than you still owe on the loan.
The amount the car is auctioned off for goes towards paying off the dafaulted loan. There will still be a remaining balance on that loan that you are responsible for, and since we are talking about bank money, yes they can tax you on it.

lrhall41

Submitted by Jedi Mistress Ari on Tue, 09/05/2006 - 10:35

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Jedi is correct. I had a repo in 1996. The car was sold at auct

Jedi is correct. I had a repo in 1996. The car was sold at auction and I was told that I stilled owed the rest of my loan. I worked with the original loan company and eventually paid them off. I would try to get in touch with the original loan company and try to work with them instead of a debt collector.

lrhall41

Submitted by michaelsmom on Fri, 09/15/2006 - 06:07

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