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Will your son be responsible for the 3000 dollar loan balance on a car that is broken down if he has the car repossessed by the lender?
Wiki User
∙ 17y ago
Absolutely. More than likely much more than he owes today. The amount he owes is NOT limited by the value of the car. Having property repossesed only means the lender gets to sell it and use the funds toward the repayment of the debt. If the amount received does not pay the amount owed, the remainder is not extinguished or forgiven. It is still owed and the lender may, (and normally will) pursue any other means to collect it. That includes wage garnishments or trying to seize any other assets they can to sell and recover all they are owed. Moreover, the lender can (and will look to) recover all costs they had in trying to get payment. So any costs of repossession they incur, from towing to storage to legal fees, etc., will increase the amount he owes. Also, while a lender would logically try and sell the asset for as much as it can, clearly, they will normally do so in the more commercial markets (like wholesaler auctions). It is a given that the value received at these places is lower than an indivdual will normally be able to get at private sale. The vehicle being sold is not likely to be spruced up for sale, on top of being a repossession, with an unknown - even suspect - history, and the amount received can be small, maybe not even cover the costs of the repossession. He'll likely just make his situation worse than if he sold it himself - and arranged with the bank before hand an arrangement where he will satisfy his obligation to pay them off.
Wiki User
∙ 17y ago
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Are you only liable for the dollar amount that you signed for or are you liable for the full balance on the card?
If you are the account or joint account holder, you are responsible for the entire balance regardless of who incurred the debt. If you are an authorized user you are not responsible for repayment except to the account holder.
Can a finance company garnish your pay for a car that was repossessed in 2004 and tack on 9000 dollar more then what you owed they started the garnishment in 2009?
If your car is repossessed you are responsible for the difference in what it brought when sold by the loan company and what you owed, plus the repossession charges. That is more than likely where the $9,000 comes from. Rarely does the car bring even close to retail, and most often is sold at wholesale price. This leaves you in the hole for the balance which you will have to pay. This is repossession is such a bad idea. You need to seek legal advice from a lawyer.
If creditor has threatened to repossess if a certain amount is not paid and you have paid partial can the vehicle still be repossessed?
As long as the contract is in DEFAULT, the collateral CAN be repossessed. One dollar or one day. Its a GAMBLE you take when you are in default.
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1 dollar
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to learn to be responsible and the worth of the dollar
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Bureau of Engraving, Department of Treasury.
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The basic unit of money in Australia is the Australian dollar.
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The dollar amounts of debits equals the dollar amount of credits in the ledger of a balance sheet. When these two values are equal, the budget is balanced.
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Jane has a checkbook balance of 68.00she then writes two checkesone for 5.00and one for 62.50she also deposites 75.00she then uses her calculator to determine her new balancewhat key?
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