What is a credit union?

What happens when you cant pay a credit union anymore?

  • brief story: when my mother was healthy she went got a car she paid off the car well the credit union did and she was paying this credit union instead of the car agency everything was fine payments always on time she had everything running smoothly. a year later she fell ill until now she is very ill and is living off ssi checks for disability she cannot afford to pay the credit union there is just not enough money .. what can we do any advice and no bad comments got enough negatavism already. thank you

  • Answer:

    same as any other loan -- collection dept, repo, sell the car, balance due to collectors, sue for the money, and finally give up.

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the credit union will repo the car & auction it off to recover what's owed. your mom, as signer on the note, is still liable for any shortfall. you can take the car & simply return the keys to the credit union & explain that she has no money due to her illness. At worst, they'll issue a 1099 forgiveness of debt for whatever they end up charging off & your mom will have to pay taxes on it as ordinary income.

If you cannot pay the car payment, the credit union will repossess the car.

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