Quick Answer: A car repossession deficiency occurs when the sale proceeds don’t cover the remaining loan balance, leaving the borrower responsible for the difference. Don’s options for the $11,000 deficiency are limited to either negotiating a payment arrangement with the lender or filing for bankruptcy to discharge the debt before being sued.
“Dear Steve,
My car was repossed. I fell behind on the payments, the transmission went out, and I didn’t have a place to live for a short period of time. I had to choose and having a place to live won out. I’m employed and have just received the deficiency notice. I owe $11,000 which of course I don’t have.
What are my options and what do you recommend? I’m sure I’ll be receiving a notice before long advising me that they are suing for the 11 grand.
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Dear Don,
Your options are limited. You can make an arrangement to pay them or you can discharge the debt in bankruptcy before they sue you.
Click here to find a local bankruptcy attorney you can talk this over with if you can’t afford to repay the $11,000.
Dealing With Debt? Understanding your options is the first step. See how all your debt relief options compare — including ones most sites won’t tell you about. The Find Your Path quiz gives a recommendation based on your actual numbers, and the Scam-O-Meter checks any company’s complaint history before you sign. Federal Reserve research shows bankruptcy filers recover faster than those who don’t file.
