Get Out of Debt Guy - Steve Rhode

The Repo Man Took My Motorcycle and Sold It. – Shelby


“Dear Steve,

I had a motocycle, never missed a payment for 2 years. Lost my job and I am getting unemployment. I got 2 months behind on my bike payments and the repo man got the bike. The bike was sold in auctiion and I am being sued for the difference.

I received a judgement against me and they put a hold on my personal bank account. I amd currently on unemployment . I go to court in about a week about the garnishment of my bank account. Something odd though about this case.

They say I have $425 in my account, I only have $25 in personal checking account. My unemployment is on a card from the government and the bank says they cannot even go into my unemployment account

I have a 2002 toyota echo, it is my only asset. Can I lose my car? It is all I have to look for a job and it is totally paid off. I looked up the blue book value and it says the car is worth $5,000 I don’t see how that is possible the car is 8 years old and only cost $12,000


Dear Shelby,

Well the bad news is you do owe the debt for the motorcycle that got popped. Vehicles that are reposed are subsequently sold at auction and fetch very little when compared to the balance due. The auction isn’t interested in getting your loan paid, they want to move vehicles through.

While the lender will probably get a judgment against you it will be important for you to explain that your only income right now is unemployment or other public benefits. They can’t garnish that.

I don’t know how they came up with the dollar amount but the best thing to do would be to stop by the ATM and print out a current balance receipt and take that with you to court if they ask you to prove the current balance.

The lender can’t force you to sell your Echo. I imagine what will happen is the lender will get the judgment and it will sit there and earn interest till you pay it. Once you find a new job then I would contact the lender and make repayment arrangements on the judgment and get it satisfied over time.

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!
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