Do I Still Owe on the Loan, If the Bank Repossesses My Car?
October 29, 2014

If the Bank Repossesses My Car, Do I Still Owe on the Loan?

Likely.  When the economy turned down in 2008, many Americans were unable to make ends meet, including the inability to make basic payments for necessities, like a car payment. Many people were left with the gut wrenching prospect of either having their vehicle repossessed or voluntarily surrendering it to the dealer. As this Q & A in the LA Times points out, once you return a car, you are not off the hook. Once a vehicle is repossessed, it will likely be sold at auction. Any remaining balance left after the car is auctioned off becomes the original buyer’s responsibility.

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As the contributor of this article suggests, settlement may be an option once you are left with a deficiency balance. He also points out that it is extremely wise to contact an attorney to complete the settlement process. If you have a car repossession on your credit report, look for a qualified debt settlement attorney in your area that has abundant experience in the settlement arena.   To avoid receiving a judgment and the possibility of wage garnishment, contact an experienced debt settlement attorney. They can often drastically reduce the deficiency balance without the need for bankruptcy.

Author: Kevin Fallon McCarthy

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