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What happens when you can not pay what you owe after you repo your car?
Wiki User
∙ 12y ago
If you mean, what happens after your car is repo'd and you cannot afford to pay the difference then I can explain.
1st. I repo for a living and have seen this 1st hand - there are a LOT of GOOD people out there that have had collateral repo'd
Anyways, you will get a letter from the lienholder stating the collateral was sold at auction, and for how much. They will deduct the amt it sold for from the total bill you owe (loan/repo fee/auction fee etc). So, 10k owed, 5k from Auction = you still owe 5k.
Next they will ask that you contact them to make arrangements to pay this amount. This whole process always makes me shake my head..the Debtor couldn't pay the original note and now the lienholder, so HOT to get the collateral back, sells it for pennys on the dollar and then wants you to keep paying....
If you ignore this, don't call, don't make arrangements, they MAY send you a settlement letter, which could be an amount as low as 40% of the difference. In my example they would offer you to settle for 2,500. Sounds like a good deal, but, they want it all, not payments, usually. At the point of the settlement letter, I would call them and ask to arrange a pay schedule on the offered amt. Up to you.
If you ignore the settlement letter, you will get a new bill from them, which will include lawyer costs, the FULL amt of the loan, any court fees etc because they will be coming after you in civil court - prepare to get garnished.
Bottom line, if you got repo'd and you are still in a situation that you can barely afford anything, youre better off filing bankruptcy and moving on.
Hope this helps.
Wiki User
∙ 12y ago
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Can the repo people keep belongings inside the car?
Yes. once they repo the car the only was to get items back is to pay off what you owe
How can you get back your car from repo?
pay off the debt you owe on the car, and if they trust you enough the company you are making the payments to for the car will continue to give you the car
Can I stop them from repo my bike?
Yes, pay what you owe on it.
Do you pay what is left on the loan or what the lienholder sells it for on a voluntary repossession of a car?
On ANY repo, you pay the balance due AFTER the car is sold. Payoff = 5K, car sells for 2k, fees = 1K, you owe 4K.
If your car is out for repo but has been totaled in a car accident are you still repsonsible for the payments or will the insurance company pay off?
Your insurance will only pay off what the blue book value of the car is, whether that's enought to pay off the vehicle is unknown to me. If you owe $7k and insurance says the car is worth $5k you owe the $2k difference.
How do you get custom tires off of your repo vehicle that you still owe on?
you don't,it's part of the car now.even if you owe for the wheels , you more than likely won't get them back .you will still be responsible to pay for them
Can a lender under NY law repo your car if you finish your payments but did not pay late charges totaling 176?
Well yes. Because you still legally owe on the car. Just pay the 176 and be finished with it.
If you want to get rid of your car for a cheaper one but owe too much what options other than repo do you have?
SELL the car for all you can get and beg,borrow,steal the difference so you can pay off the loan. THAT will keep the repo off your CR. Good Luck
Can you self repo your car?
Yes, you can self repo your car if you can no longer afford your car and is financially unable to pay the payments for your car.
My Car was repossessed what do I owe the bank?
They will auction the car and you will have to pay the difference of what you owe and what the car sold for.
You still have your car but the repo man called and told you that he needed to pick up your car what do you do?
Get hold of whoever it is that you should have paid money to (bank, car dealer...). If you can, pay what you owe, or agree on another payment plan. Once you and the lender have reached a new agreement the lender can call the repo off, and you'd get to keep the car.
After 8 years after your car was repo you are being sued i did not receive a letter after repo?
Did you borrow the money and sign a contract to repay the loan? Did you have your car repossessed because you failed to make your payments? They repossessed your car and sold it, and you owe the difference in what the car sold for and the balance on the loan. What difference does a letter or 8 years make. Be an honorable honest person. Pay them their money. Legally you may get out of paying but morally you owe them the money you borrowed.
