May
05
how much will my credit score go down if i turn in a commercial lease?
By
I have a small company that has a commercial lease on a $90,000 straight truck. The semi has not been on the road for over 6 months and I can’t afford the $1800 monthly payment. What happens if I turn the vehicle back in. Currently it is registered to the company but I am the personal guarantor on the note.
Repossession
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2 Comments
May 15th, 2009 at 10:32 pm
While they will come after you since you guaranteed the contract, it shouldn’t affect your personal credit score.
May 17th, 2009 at 10:10 am
It’s a little different because you aren’t the borrower, but when you turn it back in, the lender will look to you to pay off the deficiency since you guaranteed the loan. So if they can only sell the truck for, say, $70K but you owe $80K, they will expect you to pay them $10K or they will sue you for it and probably obtain a judgement, which *will* go on your personal credit report just like if you had been the borrower. So you have a little time to make things good with them or try to set up a payment plan or something, but in the end, if things go bad they will go bad all the same.