More details to this question:
I had my car repossessed April 25 by a private company who broke into my car to see the vin number. My car came from Ohio so they auctioned it off. I'm now being garnished and I was wondering once the car was sold can they charge me the full amount or is the sell supposed to be deducted.
1 ANSWER
Min Gyu (Peter) Kim
Good morning
Once the car is repossessed, your car lender will usually set the car for a private or public auction. Once the car is auctioned off, whatever remaining balance (deficiency balance) will be a debt you will still owe.
However, the problem that arises is that the amount the car is sold for at aunction are pretty low and the lender will charge all the related costs and fees (to auction the car, etc..) as part of the balance owed on the car.
If you owe on this deficiency and you have other debts, you may want to consider a bankrutpcy to address and discharge all your unsecured debts (barring few exception) to clean up your credit
My office provides a free consultaiton so feel free to contact me if you reside in Houston or the surrouding area
Peter Kim, Attorney
(713) 259-3929
Answered on Jul 16th, 2018 at 6:21 AM