what are my responsibilities after a vehicle gets repossessed?

Question

about 18 months ago i lost my job and my car was reposessed. i still owed like 10,000 on it and i had the choice of paying the car payment or paying rent and getting groceries for my kids. so i called the place i had the loan from and i was told if the car was repo'ed i wasnt liable for the balance owed on the car. so now i get calls and letters from this collection agency and i am being told that i have to pay them all this money or i am going to jail....
i dont have the contracts i signed anymore so i dont know exactally what it said but generally can they do this?

i was told that after the care was repo'd it was auctioned and they deducted the $ they got in the auction from my balalce adn now they are asking for the entire balance. i was given an oppurtunity to settle and although i am not able NOW as soon as i get my tax $ i can offer whatever to them...

Answer 1

After your vehicle is repossessed the lein holder sells it and whatever remains on the carloan (after repossession fees and interest) YOU STILL OWE. They can sue you for the remainder and garnish your wages. That is the typical response to the collection of the debt. They don't throw you in jail.

Also a word to the wise, PAY THE ORIGINAL LEIN HOLDER, or ask who they have sold the debt to. Those predatory collection companies are a nuisance. They typically sell the loan a couple of times after default.

You can work out a payment arrangement (most companies will choose this option) or file bankruptcy.

Answer 2

That one gets trikier as each moment passes. The Interest on the Loan is what eats you up. Ever looked at Actuall Value, MSRP and Loan Values. They are all different.
A 2007 Chevy, MSRP $17,999
same car at a dealer NEW! $19,000
same car at your bank loan officer, $18,000
Buy that car, drive around the block, take it back to the same dealer, and offer it as a trade in. Well now it is a used car, it just lost $10,000 in value.
Ok, thats car buying 101., now your situation.
You state that you signed contracts that you no longer have, well they do. Ask them for a copy, by law they have to give you one.
Now you can play hardball, ask whoever exactly what you owe and why. You may be suprised to find out that you now owe about 5 Corporations.
Thats normall.
Consolidate all loans to everybody into one account, negotiate a cash settlement at a fixed an reasonable Interest Rate. Start paying.
I played that loan game about 10 years ago, a $12,000 boat ended up costing me about $24,000 in payments.
I had to file a Bankrupcy 6 years ago. I did pay off that boat, and I sold it. I will never get another loan in my life. My credit whatever will clear in about 6 months, but I still will never get a loan on anything. If I cannot pay cash, I cannot afford it.
They are gonna keep you paying the rest of your life, and all you are paying is the Interest.
Contact an Attorney that works in that area, get your lives back, and call it a lesson learned.

Answer 3

I think what happens is that you wind up owing the balance left over from auction.

For instance. You owe $10,000. The lender takes the car to auction and receives $7,000. You will owe $3,000.

If what you owe is small enough, some bank may give you a loan but credit unions are your best bet.

The word of caution here is, do not resume paying monthly on that car until you are sure you can pay every month. To have a repo, then to pay for two months on time and then skip a couple months is worse on your credit than just having the balance sit there for a while.

Hope this helps. E-mail me if I wasn't clear enough.

Answer 4

sure, they might take the factors. yet keep in mind that the motor vehicle would be bought at public sale. A basket case automobile does not herald very lots funds. The borrower nonetheless owes what's left over after the money from the standard public sale is utilized to the interior maximum loan. the subsequent step is that the borrower would be taken to courtroom. The borrower will lose. The choose would have the borrower's wages garnished. Any earnings tax returns would be garnished. A lien would be placed on something of fee the borrower owns. whilst they sell this merchandise the money is going to the financial company. On precise of that, the borrower would be on the hook for courtroom expenses and legal expenses. purely digging them self in deeper. i'm hoping you're no longer pondering this because it would be lots extra problem than it incredibly is nicely worth. while you're so formidable which you're keen to completely dismantle a automobile just to avert having it repossessed, does not or no longer it is a extra constructive concept to get a activity or a 2d activity and pay off your debt?

Answer 5

I am in the same situation. Me and my boyfriend got a car and we coudnt afford it anymore, so the repo'd it and they told us it would be sold at an auction and if it was sold for more or the same for what it was worth which was 16,000, we wouldn't owe anything but if it was sold for less then we would owe the difference, They sold it for 9,000 so we owe 7,000 and they keep calling, from different credit places and sending letters and I have told them we can't pay all that at once and they say rediculous things like can't you borrow 1,000 from 7 different people and I say nobody has that kind of money. Its dumb and I was told they have to accept payment arrangements, so thats all I can tell you. But if your car gets repo'd, a lawyer said you are responsible for paying for it still.

Answer 6

Unfortunately, you maybe liable for the difference between what the repo company sells the car for and the balance owed. If they can sell it for what you owe, then you may be off the hook but that rarely happens. This makes another good reminder to read the fine print and to always keep copies of the paperwork.

Answer 7

Is the loan company after the full amount of the vehicle owed or is it a final partial payment?

I am also interested in the answer to this question, my brother may be going through a similar process soon.

Answer 8

The original amount was $28,981.27 the car was sold for $16,000, there is a balance of $12,981.27 but will settle for $10,079 and they are saying I have to pay $200.00 for the next 50.4 months [4 years]. If you are unable to afford this, no one to borrow from, then what?

Answer 9

Yes, they can...they can auction it off and you still have to pay the difference...