1st. Everyone has an estate. There maybe nothing in it but we all have an estate. Check the loan papers and many finance mangers add death benefit so if the borrower passes the car is paid. 2nd see if you can sell the car on eBay with a reserve. Even if she clears the loan and makes no money off if it. She is responsible for his debt regardless of who’s car it is. Also they owned a home together so there is money in the estate.

Go and talk to the Bank and discuss the matter with them. Most Banks will work with you especially under the circumstances you have stated

until spifmans post this was the worst thread of advice i ever saw.

if she was not on the loan she is not responsible for the debt. she does have to turn in the car. the finance co can sell the car and try to add the deficiency balance to the estate (if there a estate).

My position is likely to be an unpopular one…

I would drop the COBRA coverage. Medical coverage through COBRA is likelyh 4-700 per month. Do you have a serious medical condition that would cost more than that to treat? If not, then COBRA is a huge waste of money. I have not have medical coverage for 5 yrs. Ihave put $300/month into a savings account though. In the 5 yrs, I have had to spend about $600 on doctor visits and medication. I am about $17K ahead in case i have a major expense.

As others have said, the car can help you GET and KEEP a job, that we hope has good benefits. How good are your chances of getting a good job when you have to rely on a bus pass or your trusty Schwinn?

Also, keep this in mind. If the car does go to repo, as you know, yes you owe the balance. they will still force you to pay that. So whats better – being saddled with the debt and having a car, or being saddled with the same debt, but NOT having a car? Either way, you owe, May as well owe it and have transportation.

The estate is responsible for the debts. Debts should be paid before assets are distributed to heirs. Your MIL is not responsible, provided they are not in a community property state.

In the case of the car, send Ford a letter with a photocopy of the death certificate. Tell them that the estate doesn’t have the assets to pay for the car. Ask them to come get the car or tell you where to turn the car in.

Likewise, if he any credit cards in his name only or medical bills, send them a letter with a photocopy of the death certificate, indicating the estate has no assets to pay the debts.

Don’t let any of the creditors convince you that your MIL is responsible for debts in his name only.

Well, emergency rooms have to treat you if you have a serious injury. Nobody has to lend you money to buy a car you need to get a job.

If you decide to turn it in, you can sometimes save yourself a few hundred dollars by calling them and telling them you are going to do it and ask them where to take it.

Its not going to make a huge difference. You will still owe many thousands but It would be better to owe $200 less.

Your credit is already bad and after the repo will be essentially worthless for at least 4 years. It will stay on there for 7 years but if you have other things that you pay for on time, its affect will get smaller over the years.

You’re pretty much screwed either way. Sorry to say.