2007-06-07 16:37:12 · 6 answers · asked by kelly g 1 in Business & Finance ➔ Credit
Possibly
2007-06-07 16:39:57 · answer #1 · answered by smiling_freds_biz_info 6 · 0⤊ 0⤋
Auto finance is what I do for a living and let me tell you about the repossession process.
After the vehicle is picked up, they will sell it at auction for a lot less then it's worth. Then they will come after you for the difference between what they sold it for and what you owed them plus all fees for the repossession, towing, storage, lawyers and anything else they can think of.
If you do not pay them, they will go to court and get a judgment. At that point they can attach bank accounts, garnish your wages (if your State allows it) and file liens on any other property you may own like autos, boats, land and homes.
And all of this the repossession, the collection activity, the judgment, will all show on your credit for the next 7-years making it almost impossible for you to get any credit without paying a massive down payment, huge fees and maximum interest rates.
You need to contact them and make some kind of arrangement to pay them back before this all happens.
And the previous poster who said that they will not come after you, simply doe's not know what they are talking about. Auto lenders are taking massive losses right now and they are going after every dollar they can get to off set those losses.
2007-06-08 09:15:53 · answer #2 · answered by ? 7 · 0⤊ 0⤋
Yes, it is very possible. The lending firm took your car away because you did not make the payments as agreed. It was probably sold at auction for far less than you owed on it. You are responsible for payment of the difference between what you owed and what the auction brought for the car, plus fees for repossessing, towing, storage, and other things.
2007-06-07 23:51:06 · answer #3 · answered by acermill 7 · 1⤊ 0⤋
Is it possible? The answer is yes. Will it happen? Most likely, no.
Why? Its not worth it to the debt collection agency to go through the process of getting a judgement against you. It costs them time, money and extra energy that they could be using collecting debts from others who probably owe lots more than you do.
I know all of this because I've been there.
2007-06-07 23:46:17 · answer #4 · answered by onenameym 2 · 0⤊ 1⤋
Yes. Get Credit Counselling A.S.A.P. They can help you get your debt broken down into manageable/affordable payments so that you don't have to go through that type of humiliation again.
Credit counselling in your area can be found in the yellow pages of your telephone directory.
Here is an example of one:
http://creditcounsellingcanada.ca/
2007-06-07 23:43:29 · answer #5 · answered by Alletery 6 · 0⤊ 0⤋
Sure they can. All they need is a judgement and writ of execution.
2007-06-08 01:38:53 · answer #6 · answered by Jack 6 · 0⤊ 0⤋