Volunteer Repossession of my Harley in 2005 Oklahoma

[goneriding]

Good Afternoon:

My husband and I moved from California to Oklahoma and needless to say, the income was very different in Oklahoma. In June of 2005, I decided to perform a volunteer repossession on my 2003 Harley Davidson - payments were $564 per month and was too difficult to pay on and provide for the family. The bike was just sitting in the garage, I went from riding 20k miles a year to notta. I paid my first Harley off in full - it too is sitting in the garage not being rode. At the time I owed $19k on the bike. My payments were current excluding May and June 2005. Harley Davidson convinced me that if I performed a volunteer reposession, they would auction my bike off and likely get very close or over the amount that I owed on the bike. If they auctioned it for more than I owed, I would receive the overage. Well, I was convinced. I received a letter in the mail three (3) months later that my bike has been sold for $12,000 - I was shocked and very angry. Now the company has noted it on my credit report that I owe $11,865 and that the account is charged off/Repossession $11,865 written off. I have a collection agency that is now calling stating that they are going to take legal action to get the balance due. I am serioulsy considering bankrupcty, I do not want to pay on this bike as it was bought by someone else and it had a lot of extras on - worth well more than $19k - I believe that Harley cheated me. What are my options? What can they do to get their balance owed? What affects will bankruptcy have on my already not so good credit?

Thank you very much for your help.

[cyjeff]

This is the risk in voluntary repossession. You lose control over the sale. At auction, if that is all that was offered, that is all that was paid.

If you had sold it yourself, you would have been able to refuse an offer that was so low.

I am a little confused, though... how did 19 minus 12 become 11?

Anyway... you are on the hook for the difference. You may want to look into selling your other bike... yourself, this time... and getting a fair price.

Bankruptcy laws have changed significantly in the last year.... and doesn't necessarily get you out of paying owed debt.

And it will send your credit rating into the abyss for the next 7 years.

[goneriding]

I am working with them on a payment plan. I understand the process, I just wish I knew more before I did this. Harley made it sound so inoccent and easy. I would have never done this had they told me that my bike would sell for much less at auction - but in this case they said it was the other way around. I owe the difference of 19k plus all of their add on costs for picking up and storing the bike. BS if you ask me. I will never buy another Harley Davidson. The other Harley is my husband's bike - not mine to sell. Slow and easy is all I can and am willing to do now. What difference will making payments to them make on my creidit report?

[cyjeff]

I would honestly be more worried what a voluntary repossession will do to your credit report.

A repossession is a repossession and will look bad.