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Can a creditor sue you for a deficiency balance?

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βˆ™ 2006-07-24 23:50:13

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Yes.. always it's in the fine print on the documents you signed.

2006-07-24 23:50:13
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Q: Can a creditor sue you for a deficiency balance?
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Related Questions

Can a creditor sue you for a deficiency balance in the State of Oregon?

Yes. The lender can sue you also for fees, costs, and penalties incurred in the attempt to recover the debt.

With a cross collateralized debt when the vehicle was surrendered can the creditor demand payment for deficiency?

In the state of Texas, yes the creditor can follow for the deficiency balance.

Can your wages be garnished for a car that was repossessed?

Yes, if there was a deficiency balance owing after the car was sold at auction. Your creditor would have to sue you and obtain judgment in order to garnish your wages.

Can my check be garnished for foreclosure?

It cannot be garnished "for foreclosure," but if there is a deficiency after the house is auctioned - as is usually the case - the creditor can sue for the balance due and garnish wages just like any creditor in MOST states. Some states limit the foreclosing entity to the proceeds from the auction.

How do you return an unpaid car?

If it is too difficult to maintain payments on a car loan, it is possible to voluntarily give it back to the creditor or dealership. In some states, however, a creditor can sue for the remaining balance owed on the loan.

If you were involved in a car accident and it was not your fault are you resposible for the balance of the loan?

If the other party has insurance, then their company needs to pay off the balance. you are but you can sue their insurance for the loss but the creditor will expect you to owner the contract(the loan)

Can a creditor garnish social security in Texas for deficiency after repo?

NO. Social Security income is protected from creditor claims.

Can creditor sue you if you live in another state?


Can a collection agency sue you?

If a collection agency has either purchased the debt from the original creditor, or obtained an assignment of it from the original creditor (to collect on its behalf), generally, it can sue for collection.

Can a law firm sue you for a deficient balance of a repo'd vehicle if the original creditor charged off the amount to profit-loss?

Dont pay it and find out for sure.

What does it means if sundry creditor hava a debit balance and credit balance?

If someone has a creditor and has a debit balance and a credit balance this means they have a bank account. The bank account provides the debit card and the bank provides the credit balance.

What if the creditor sells the car anyway while automatic stay is in effect?

In a Chapter 7 bankruptcy, a secured creditor has the right to repossess any secured property and sell it. However, if the car does not bring enough at the sale to pay off the entire loan and cost of repo, the automatic stay prohibits the creditor from pursuing this deficiency balance.

Can repo company attach a lien on real property?

State laws vary but generally, a creditor can sue the debtor in court for any deficiency after the repossession and if successful can obtain a judgment. The creditor can then request a judgment lien from the court and once recorded in the land records the lien will attach to the debtor's real estate.

Can car company put lien on house if person is on SSI and can't pay car loan Voluntary repossession.?

Not directly, and not always. In order to put a lien on a house a creditor must have a "judgment" against the person who owns the house. In order to take a judgment, the creditor usually must repossess the car, sell it at a commercially reasonable sale, credit the proceeds (less costs of taking and sale) to the account, and demand the remainder as a "deficiency" balance. If the debtor doesn't pay the "deficiency", the creditor can sue in the civil courts. The debtor usually has 30 days to answer the deficiency claim, and there are MANY, MANY defenses to deficiencies. For example...that the creditor did not give the debtor the option of a public or private sale; that the creditor, after repossession, did not give the debtor a fair opportunity to redeem the vehicle; that the creditor violated the consumer's rights in taking the vehicle without a court order over active and unequivocal protest; that the creditor overcharged the debtor on interest, finance charges, insurance premiums, documentation fees, etc. The debtor may even have a counterclaim against the creditor for violating repossession laws, which in any event would equal the finance charge plus 10% of the cash price. This is where an experienced consumer defense attorney is essential. Bear in mind, however, that the creditor can forget about the repossession of the collateral and sue directly on the obligation, which would make the debtor have to defend at an earlier stage.

How long after a repossession can a creditor sue you?

A creditor can try to collect forever but it's usually not worth the cost of involving the courts.

Can the private mortgage insurer sue the homeowner for the deficiency it pays to the lender after a foreclosure?

Yes, the private mortgage insurer can sue the homeowner for the deficiency. They can get a judgment against the home owner for the difference.

How do you say Deficiency balance in spanish?


Can you sue a creditor for not updateing my credit report after a payment was received?

Creditors update credit reports on their schedule, some update every month, others update every other or every third month. If you are in a hurry, contact the credit bureaus and have them contact the creditor themselves. You can sue a creditor, but you have to try contacting the creditor first (via mail), then file a complaint with the FTC, then contact the credit bureaus. If the account still hasn't been updated, you can go ahead and sue the creditor.

What is creditor account with debit balances?

A creditor is an entity that a company owes money to, such as debt to a bank or bondholders. If a creditor has a debit balance, it means that your company paid more than they owed. If there was a credit balance, you would owe money on that account.

What is a deficiency balance for repossession Louisiana?

The deficiency balance in every state as relates to repossession is the outstanding balance of the original principle plus fees accrued by the repossession process that remain after the resale of the repossessed vehicle.

Can the lender sue for deficiency in NV?

Yes. And read your loan agreement.

Can you be sued by the original creditor if the debt is now owned by a debt buyer?

No they can not sue you.

Can a junk debt collection lawyer sue using original creditor as plaintiff?


What is the statute of limitations for a creditor to sue for a dept in the state of Florida?

4 years

Is there anyway to reduce the deficiency one your car has been repossessed?

You would have to negotiate that with the creditor. Many are willing to accept settlement agreements to have the deficiency paid off.