Do I Still Owe Money After a Voluntary Repossion of a Car and Auction?
Full Question:
Answer:
Turning in the car might not relieve you of your financial responsibility. The answer will depend on whether the company gave you a release from remaining debt when you surrendered the car. When using a voluntary repossession, the lender will sell the property at auction and the proceeds will be applied to the balance of your auto or mortgage loan and the fees that will be involved. If the balance is not paid off you'll be informed of the balance and that you are still responsible for paying it off. If there is money left over after the loan balance and all fees are paid, don't expect to get any of the profit as the company can legally keep it. The deficiency balance is the difference between what you owe on your loan and what your creditor receives from selling the vehicle. Creditors will still be allowed to sue you for a deficiency judgment to collect the remaining loan balance or deficiency balance.
If you can't pay the deficiency, the lease finance company will have to decide whether it will seek a court judgment against you. You might be "judgment proof," meaning the company doesn't have any real prospect of collecting that judgment. I suggest you consult a local attorney who can review all the facts and documents involved. Please see our attorney directory at the link below:
http://lawyers.uslegal.com/general-practice/florida/