What happens when a car is voluntarily reposessed?

Answer 1

Usually the car is taken and inventoried. it is then either sold at an auction or through a dealership based upon the age and how well the vehicle was maintained. After the sale of the car all expenses and balance of the loan are offset by the sale amount. If there is a residual balance after all fees are paid you can expect a check for that amount. If there is still a balance due after the sale you will be liable and expected to pay that balance off example below: Balance left on loan including interest etc.: $20,000.00

Default and repession fees: $ 1,000.00

Repair / Maintainence fees: $ 1,500.00

Auction fees: $ 600.00

___________ Total: $23,100.00 Car sold at auction for: $15,000.00 You owe the creditor: $ 8, 100.00 The creditor will try to collect that balance from you via normal collection efforts however if you do not pay through those efforts he may sue you for the difficency balance and you can be responsible for all fees he incurs to obtain a judgment against you. Once judgment is obtained he can enforce collection of the judgment through several means such as a wage garnishment, bank execution or property execution. (I suggest you review the laws in your state regarding the collection of a judgment). Salvatore Mattiaccio

President

The Lakeland Group, Inc.

P.O. Box 20

Sparta NJ 07871

(973) 729-2372