Perhaps the worst thing about having your car repossessed is that even after your vehicle is gone, your lender may not be done with you. In some cases, lenders may file lawsuits against borrowers to recoup what they’re owed. In this blog post, we’ll look at what’s involved with being sued after a car repossession.
What happens to my car if I repo it?
The lender is required to send the borrower a second written letter, called a Deficiency Notice, stating the deficient balance owe, plus any additional charges, such as repo and storage fees. Even if you do not have the vehicle, you still have a financial obligation to the lender until the loan has been satisfied.
What happens if sister sues brother over estate?
So, sister sued brother to set aside the money transfers. Three years later, on the day of trial, the siblings announced a probate lawsuit settlement. Question: want to learn more about what happened in this will contest trial ? Want to read what the judge said about the sister and brother engaging in probate litigation over two estates?
What happens if you are sued for a car loan deficiency?
If you are being sued for a car loan deficiency, do not ignore it. You still have an obligation to the lender for the deficient balance, even if you don’t have the vehicle. If you disregard a summons to appear in court, the case will proceed without you and a default judgment could be entered against you for the balance of the debt.
Can a car lender Sue you for a deficiency?
After taking you car, the lender must actually sell it in order to go after you for a deficiency. If the lender repossessed the car, but kept it, there’s no deficiency. When the lender decides to sell the car, it must send you proper written notice about the sale. If the notice contains incorrect information, it is invalid.
Can a creditor repossess a car for a deficiency?
When a creditor repossesses your car for defaulting on the loan agreement, it may then attempt to collect the deficiency balance from you. However, there might be circumstances when the creditor can’t go after you for the deficiency.
