If my car is repossessed, can I be held responsible for the balance owed?
Full Question:
If I let a truck go back, will I be responsible for the difference between what I owe the finance company, and what they get for the truck? It seems that I should be judgement proof as I own no property or anything of any value.
10/01/2009 |
Category: Contracts ยป Breach of Co... |
State: Texas |
#18893
Answer:
Repossession of a car due to default on the payment of a automobile loan does not relieve the borrower of his or her responsibility for the balance of the loan. It is up to the lender to decide if they wish to pursue you for the balance. Most auto loans, whether obtained through the dealer, a bank, a credit union or any other lender, give the creditor the right to repossess the vehicle if you default on the car loan. The lender is not required to give prior notice. After repossessing your car, the lender will sell it to recover the money you owe. If there is a shortfall between your outstanding loan balance and the sale price, you may be held responsible for paying it, plus the creditor's repossession expenses.
