More details to this question:
I volunteer to let my car go and the auto loan company said I had to pay the storage fee also the repossession fee & auction difference. If i did not pay that in a full amount they would garnish my checks an the co-signers checks also. Is that possible?
4 ANSWERS
Bankruptcy Attorney serving Phoenix, AZ
at
Law Office of D. L. Drain, P.A.
Update Your Profile
The law of the state where you live will dictate this answer.
Answered on Jul 30th, 2013 at 8:30 PM
Debt Collection Attorney serving Chicago, IL
Partner at
Edelman, Combs, Latturner & Goodwin, LLC
2 Awards
An auto finance or loan company that repossesses collateral can sell it and recover a deficiency if it shows that the sale is commercially reasonable. There cannot be a garnishment or wage deduction unless they sue you, serve you with process, and obtain a judgment. A cosigner in Illinois is entitled to written notice of default and an opportunity to take over the contract payments before any collection action is taken, including credit reporting and repossession. 815 ILCS 505/2S. The cosigner should determine whether there has been a violation, and whether the alleged debt appears on their credit reports.
Answered on Jul 30th, 2013 at 8:30 PM
Kirk David Miller
You can be sued for an auto loan deficiency. Winning the lawsuit is a prerequisite to garnishment, however. There are required statutory notices that are prerequisite to winning a lawsuit against you for an auto loan deficiency. The required contents of these notices are found in your states version of the UCC article 9. You or your attorney should review the states article 9 requirements carefully to determine whether or not the creditor complied.
Answered on Jul 30th, 2013 at 8:30 PM
General Law Attorney serving Cherry Hill, NJ
at
Mark S. Cherry, Attorney at Law, PC
Update Your Profile
They need to sue you and obtain a judgement before they can garnish wages or attach bank accounts.
Answered on Jul 30th, 2013 at 8:30 PM