QUESTION
What should I do if I'm sued for car payments when I already notified the company that they can get the car back?
Asked on Feb 20th, 2013 on Bankruptcy - Pennsylvania
More details to this question:
I loaned a car but wasn't able to pay for it so I called the company and told them that they can get the car back since I can no longer pay for it. But, the company is now suing me for unpaid car payments?
6 ANSWERS
Landlord & Tenant Attorney serving Thibodaux, LA
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The Louque Law Firm, L.L.C.
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If the did everything correctly and did not get enough money from the sale of the car to pay off the loan, they can sue you for the remaining balance. That balance is called a deficiency. You should speak with a consumer attorney in your area to see whether the lender did everything properly and to see whether you have any defenses to paying.
Answered on Feb 24th, 2013 at 8:33 PM
Bankruptcy Attorney serving Overland Park, KS
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Wellman Law LLC
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They can sue you for the deficiency after auction. The creditor actually loaned a certain amount of money that they did not receive in return simply by getting the vehicle back. Whatever balance remains after the sale of the vehicle is something they can sue for. Your options, absent any other facts, include settling, or possibly including with other debts in a bankruptcy. Once they have a judgment, if you don't have some settlement or payment arrangement in place, they can execute on the judgment through wage garnishment or freezing bank accounts.
Answered on Feb 21st, 2013 at 10:37 PM
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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Unfortunately, your options are to work out a payment arrangement or file for bankruptcy. Please understand that filing for bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step.
Answered on Feb 21st, 2013 at 9:48 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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They are fully within their rights to sue you for your debt and do not have to accept return of the car.
Answered on Feb 21st, 2013 at 12:38 PM
Debt Collection Attorney serving Chicago, IL
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Edelman, Combs, Latturner & Goodwin, LLC
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The company can sue you or repossess the collateral and sue you for the deficiency. You have the right to sell the car and have the proceeds applied to the debt.
Answered on Feb 21st, 2013 at 12:37 PM
Bankruptcy Attorney serving Philadelphia, PA
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Halprin Law
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Unfortunately you still owe the lender whatever balance is left on the loan after they resell the car and deduct sale costs.
Answered on Feb 21st, 2013 at 12:36 PM