How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask James Mather Your Own Question
James Mather
James Mather,
Category: Law
Satisfied Customers: 22629
Experience:  Senior Partner at Berkson Wallace
Type Your Law Question Here...
James Mather is online now

Hi. I would like advice on how to deal with a financial situation

Customer Question

Hi. I would like advice on how to deal with a financial situation with a car on finance.

My husband and I have both found ourselves out of work meaning we can not afford to pay the finance on our car any longer as the mortgage etc is more important.

We have been told that even if we return the car immediately we will still have to pay off another 5k to bring payments to 50% of original loan amount. This is just not possible as we have no money coming in at all and even when my husband starts his new job it will barely cover our essentials so how can we be expected to pay it.

Is there another option even if it means our credit rating dips, we are desperate to get rid of it under these unfortunate circumstances and worried sick.
Submitted: 5 years ago.
Category: Law
Expert:  James Mather replied 5 years ago.

How much is the car worth if sold?

How mcuh is outstanding?

Customer: replied 5 years ago.

Original finance was 14k, have paid 2k in repayments and now we owe 12k and the car is now valued at 9-9.5k

Expert:  James Mather replied 5 years ago.

You can try to sell the car
yourself through the likes of we buy any and they will agree to pay the
finance off . Although you will be required to find the shortfall immediately
before the car is sold. It cannot be sold unless the finance is paid for in
full. It appears that you do not have the money to pay the shortfall, so if
that is not an option.

You can hand the car back to
the finance company and it will be sold at auction and you will get less than
your estimated 9000.

The finance company will then
look to you for the balance, which will obviously affect your credit rating
because it will be registered as a default and if they take you to court, they
will get a judgement.

I'm sorry to have to tell you
that there is no magic solution to get you out of this finance shortfall. If
there was, everyone would do it. The situation that you are in is not at all

It might be worthwhile, in
view of any other potential problems, in addition to this one, contacting an
insolvency practitioner at this early stage.

I appreciate that this is not
the answer you wanted but there is no point in me misleading you. There is
simply no magic solution to what you are looking to do. I think you probably
thought that already.

Can I help further?

Please bear with me today because I will be online and

Please don't forget to positively rate my answer service (even if it was not
what you wanted to hear) and I will follow up any further points you raise for

If you don't rate it positively, then the site keep your deposit and I get 0
for my time. It is imperative that you give my answer a positive rating. It
doesn't give me "a pat on the head", "good boy" (like ebay), it is my

If in ratings you feel that you expected more or it only helped a little,
please ask me for further info before rating me negatively otherwise I don't
get paid at all for my time and answer.

The thread remains open for us to continue this exchange

Customer: replied 5 years ago.

Are we able to negotiate a repayment amount for the amount owed as essentially we cant afford the current £271 per month, we need to realistically bring that down to as close to £100 as possible?!

Expert:  James Mather replied 5 years ago.

It comes down to negotiating with the lender.They may be more amenable to negotiate on condition car is returned.