2006-07-26 14:28:11 · 13 answers · asked by nea_11 2 in Cars & Transportation ➔ Buying & Selling
Once the car is repossessed, the bank will auction off the vehicle to try to recoup some of the money owed on the vehicle. They probably won't get the full amount still owed on the car, and you will still owe that money.
If you don't pay, they will probably sue you and get a judgement against you for the remaining amount owed. This judgement can be renewed and will be valid for quite a few years. It will only go away if you pay them the money they are owed, or if you file bankruptcy.
Your best bet is to try to sell the vehicle for the amount still owed on it. Your credit will go down the drain if you have a repossession, and will sink even lower if they get a judgement against you.
2006-07-26 14:38:45 · answer #1 · answered by Mama Pastafarian 7 · 2⤊ 0⤋
State laws vary but generally speaking when a car is repossessed it will be sold and the proceeds credited to your loan balance. In addition to the balance of your loan you also owe accrued interest, and any collection / repossession fees. If the total owing is more than the amount of the proceeds of the sale you are responsible for the balance. What if you don't pay? The lender can get a judgement against you. If you have a job they can garnishee your wages. If you own real estate they can put a lien on it, so you cannot sell it without paying the amount owing. Also the record of the repo will go on your credit bureau record for the next 7 years. In other words most lending institutions have ways of dealing with deadbeats.
2006-07-27 13:36:01 · answer #2 · answered by B 4 · 0⤊ 0⤋
You are supposed to you still owe them money but like someone else said why do it. your credit is shot anyway and if you could afford the payments it wouldnt have been repoed anyway. Tell the company to kiss your... and report you to the credit bureu it doesnt matter anymore at all. They could garnish your wages if they got real nasty but most just write it off from what I understand. It happened to a friend of mine and she told them "bite me" and never paid a cent. They hounded her for a while then went away.
2006-07-26 14:35:37 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Absolutely. First you'll lose the car. Then they can file judgement against you in a court of law and garnish your wages and/or conduct a levy of your property to satisfy the debt.
2006-07-26 14:39:51 · answer #4 · answered by alracaratq 2 · 0⤊ 0⤋
if your car is repo you will have to pay the difference between what it is sold for and what you owe.
2006-07-26 14:43:51 · answer #5 · answered by razorbuck 2 · 0⤊ 0⤋
if not, then everybody would buy a new car and not pay for it. The mark will stay on your record. Its fine if you never plan to buy anything again.
2006-07-26 15:10:04 · answer #6 · answered by zocko 5 · 0⤊ 0⤋
You still have to pay the difference between what it sells for and what you owe. It does not wipe out that obligation.
-Dio
2006-07-26 14:31:44 · answer #7 · answered by diogenese19348 6 · 0⤊ 0⤋
No, do whatever you want. You're up the creek. Why do you need a paddle?
2006-07-26 14:32:02 · answer #8 · answered by Anonymous · 0⤊ 0⤋
yes you do or it goes on your credit report.You will just pay the difference they get on it when they put it in auction.
2006-07-26 14:31:33 · answer #9 · answered by cwb63ss 6 · 0⤊ 0⤋
yes
2006-07-26 14:30:26 · answer #10 · answered by Anonymous · 0⤊ 0⤋