Reposession Deficiency Lawsuit?

When your car is repossessed because you’ve defaulted on your loan, it doesn’t necessarily mean that your financial obligation ends there. Typically, the lender will sell the car to recoup some of the money still owed. If you still owe more that what they sell it for, you will have a deficiency balance.
 
  1. Repossession: When you default on your car loan, the lender has the right to repossess the vehicle. This means they can take the car back due to non-payment.
  2. Sale of the Vehicle: After repossession, the lender will usually sell the car, often at an auction, to recover the unpaid portion of the loan.
  3. Deficiency Balance: If the sale amount of the car is less than what you owe on the loan (including the remaining loan balance, repossession costs, and related fees), you may be responsible for the difference, known as a “deficiency balance.
  4. Deficiency Lawsuit:  The Lender may bring a deficiency lawsuit against you.  They may also sell the deficiency debt to a debt collector who may then sue you for the balance.
  5. Legal Representation:  If you are sued for a deficiency balance you should seek attorney representation.
 
If you find yourself with a repossession deficiency lawsuit in a jurisdiction that we practice in, contact us at Weston Legal.  We charge flat fees to defend debt collection lawsuits.

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