Repossessed car loan
Date: Wed, 07/23/2008 - 21:20
Depending on what state you are in, they may be able to sue you
Depending on what state you are in, they may be able to sue you and get a deficiency judgment, which would be the difference between what you owed on the loan plus the lenders costs to repossess and sell the vehicle minus what the vehicle sold for. In your case, that appears to be about $20,000. If they do sue you and win the deficiency judgment, then they could garnish your wages, unless you live in a state that doesn't allow garnishment.
They do have to follow the rules in disposition and sale of the
They do have to follow the rules in disposition and sale of the collateral, which are different for every state. Generally they sell it to the highest bidder at a public auction (which it sounds like they did). After they sell the car, the deduct collection costs and auction fees, and apply the proceeds of sale of the vehicle to your balance. If they sell the car for more than you owe, then they have to give you the difference. In your case, if they sell the car for less than you owe, then they can come after you for the deficiency balance.
That is a very big deficiency! Auto lenders usually loan to value; sometimes they overbook the deal, but usually not $20K over book. Was the car severely damaged?
They can usually sue you for a deficiency and get a judgment -- but your state law may set some limitations. For example, in Illinois if you have paid at least 60% of your payments, then they can either take the car or sue you, but not both. In that case, they could not sue for a deficiency if they did take/sell the car.
If they do get a judgment, then most likely they can get a garnishment (unless, like alias said, you live in one of the 4 states that don't allow garnishments).
Payday Loan help
this absolutely depends on the which state you are in? you need to go for a consultation with the concerned company. that is the best way right now bcoz you have already mentioned that you're not in the stage for paying the amount. so I think this is the best way to negotiate and have some way out for the problem you're facing.
car auctions
