Yes. Most lenders will auction a repossessed car and sue the person who financed the car for any balance or fees still owed.
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.
A repossession will significantly lower your credit score, regardless of the balance. It will take around 7 years before the repossession is removed from the credit report.
"remaining balance" as in what you are behind OR the remaining balance due on the loan??
If a car is sold after repossession does the law states that it must be reported to the credit bureau as zero balance?
Can wages be garnished for the balance of an auto loan in the state of Delaware
Financed? Yes. The person or car dealership buying the car would write a check for the outstanding loan balance to the bank that has financed the car and anything left over they would give to you. If you owe more than the car is worth, then you (the seller) would need to make up the difference, i.e. write a check for the difference between what they are buying the car for and the remaining loan balance.
IF the lender accepts it you can.
Yes, they can be garnished for this reason.
Gap insurance only pays if the vehicle is totaled in an accident or stolen and not recovered. It does not cover the deficiency balance after a repossession sale.
You still owe the finance company the balance owed.
Actually, it doesn't just come off your record. It will show as a repossession, but it will show as no balance due.
It depends of which B/K you file and whether you complete it.
Pay the current balance, plus repossession and storage fees.
Since your insurance might not cover the balance you still have on your financed car, GAP insurance protects the balance of your loan in the event of an accident.
Yes a lender can garnish your wages after a repossession. If the resell value of the item does not cover the cost needed to repay the lender, you are still responsible for paying the balance.
NO, there are no more debtors prisons.
IF they have a JUDGEMENT for the balance due, they can garnishee your wages. Income taxes?? NO
That is called voluntary repossession. You will be required to pay the difference in what the lender sells the vehicle for and the balance on the note after that amount is applied to the loan. You did avoid repossession fees by voluntarily turning the car in. Your credit will also show this repossession for 7 years.
No, you'll be * 1) considered a credit risk since you didn't keep up the payments on the car loan. * 2) have no collateral for the new loan
An AR on a Trial Balance sheet is considered as Accounts receivable.
They will only if the remaining balance after the repossession and auction goes to litigation and the judge orders the garnishment of wages.
Yes, provided there is still an outstanding balance after the repossession and resale are completed. This is the case in most situations, due to the added cost of repossession, storage, and transport of the vehicle that will be assessed to you. If it remains unpaid, the lender may (likely will) file legal actions against you to recover the balance.