Debt Collection – Auto Loan Deficiency – Bank Account Levy – Wage Garnishment
I am from Pennsylvania.. I co-signed a car loan for my son 6-7 years ago, (I cant remember exactly how long ago.) My son was 16 at the time, he lost his job about a year and a half after he got the car, and I couldnt afford the payments, so we gave the car back. A judgement was placed against my son and I by default in August, filed through the Sheriffs office at the courthouse and on December 5th they put a hold on my bank account for 8,000.00. I found out about the hold by trying to use my debit card, and received the paperwork concerning the hold approx. a week later. Iimmediately stopped direct deposit of my paycheck and opened a joint account with my boyfriend to protect my money from that point on. I called the attorney/debt collector after finding out about this hold and I was told that they sent a Letter of Interrogatories would be sent to my bank (PNC BANK) and that they had 30 days to respond to this letter. Until then they were holding my account. Needless to say I was in a great financial bind, I had 300 dollars in that account that i desperately needed. Per the letter from the Sherriff office, the state of PA gives a cash exemption of 300 dollars, which what is in this account. A couple of days ago I got a certified letter from PNC Bank providing an answer to the interrogatories that was sent to me, the Sheriffs office and the attorney/debt collector. This was sent on 12/24, and it is now 12/31 and my acount is still frozen. They have never done anything to my son ( who is now 23).
How much longer will my bank account be frozen, and can they attach my wages for this debt owed?
—Keri C
It would be good to know a bit more about the nature of the deficiency judgment and the debt in order to give more than general feedback. I will pose some questions below that you can answer in a comment reply that will help me understand the collection situation better.
Wage Garnishment in Pennsylvania
Your wages cannot be attached or garnished for this type of debt in Pennsylvania. PA is one of the more favorable states protecting your income from employment in this regard. That leaves property liens and bank account levies (which you are experiencing) as options for collection action on a judgment.
Do you own real estate in Pennsylvania?
Debt collectors often use skip tracing methods to locate bank accounts in your name. That may be how they found your bank account they are levying now. Unfortunately, they can use the same tactics to locate the account you opened with your boyfriend. That account is not protected just because it is a joint account. In fact, your boyfriend’s money could be at risk.
Your account with the current levy could be at risk until the debt is resolved.
Collecting on Auto Loan Deficiency Balances
When you surrender a vehicle that you still owe money on, they auction it off. Whatever they get at auction is deducted from what is still owed on the car loan. What’s left unpaid is the deficiency balance. These deficiency balances often get sold off to debt buyers. Debt buyers will send these debts to a collection attorney. Sometimes, as is the case with you, the attorney will sue in order to collect. This type of lawsuit can end up with a judgment debt against you.
You can settle a debt that is the result of a surrendered or repossessed vehicle at any stage I referenced above. There are variables for settling debt like this that are unique to you and also the stage of collection. The collection stages are:
- Settle the deficiency amount while it is owed to original lender
- Settle with a collection agency that the original lender sent the deficiency balance to for collection
- Settle with a debt buyer after the deficiency balance is purchased
- Settle with a collection agency the debt buyer assigns the deficiency debt to for collection
- Settle with an attorney that the lender or debt buyer hires to collect on the deficiency
The amount you can save when settling a deficiency balance will vary. When there is a judgment in place after being sued on this type of debt (or most types of judgment debt), the settlement savings will generally not be as good as would have been the case when settling prior to collections filed in court.
You are better off living in Pennsylvania because your wages are protected from garnishment. Once the debt collection efforts from levying a bank account prove unfruitful, you are generally going to be in a better position to get a better deal through settlement.
Is your goal to settle the deficiency balance that is now a judgment?
The judgment is not going anywhere. In fact, the balance is likely growing with judgment interest set by the court. You can read a bit more about the long shelf life of judgment debt here: https://consumerrecoverynetwork.com/question/can-you-settle-credit-card-judgements-like-other-debts-stressed/
There may not be good options for you to settle the deficiency judgment right away. In that case you can try to manage your affairs on as much as a cash basis as you need to until you have a plan to resolve the debt.
You mentioned being a cosigner on the loan originally and that your son not hearing anything on this. That would make sense if he was 16 at the time. He would not be able to contract for the loan at 16.
Can you tell me if the loan was ever refinanced after your son turned 18?
Who was the original lender?
When was the last payment on the car made?
Who sued – the original lender, or a debt buyer? If a debt buyer, what name?
Who is the attorney hired to collect?
If you can answer my questions in a comment reply below I will have more feedback.
Anyone dealing with a deficiency balance that resulted from a repossession (voluntary or otherwise) is welcome to post in the comments below for feedback.
About Michael BoveeMichael started CRN in 2004 with a mission to provide people in need with detailed debt and credit help and education. Michael has participated as an expert panelist in federal consumer protection rule making, collaborated on state law changes governing debt consolidation, has worked as an expert witness in court matters related to the debt relief industry. He is available to speak with you about your financial struggle and helps people resolve their debt problems daily.
I had a car repoed because I couldn’t afford the payments anymore. It was sold, the remaining balance plus interest is around $9k. Well I received a summons for being sued for the amount and $1,300 in legal fees. I’m wanting to settle but don’t know how much. I was told they would settle for around 70 percent. What should I offer?
I have more here on settling lawsuits.
Most lawsuit settlements I see tend to be between 50 and 80 percent.
Who is the original auto loan lender?
Northwest
My husband and I bought a van in 2016 and had nothing but issues with it. It had an extended warranty, but conveniently, none of the 10K in work that needed to be done was covered, including the issue that caused it to stop at speeds of 60 MPH and higher. (It was a recall for its cousin that it was modeled after, but not for it). After battling the car place we bought it from, and not being late on payments at all, we spoke with the loan company and explained the situation. It was a dangerous vehicle and they required the warranty as part of the financing, and if they wanted it to be paid on, they needed to help us get it fixed.
They fixed the issue alright – they repossessed the vehicle 6 months after it was purchased, and sold it at auction. Keep in mind – we were never late, they to this day acknowledge that.
They stated the deficiency balance was $5573.12 since June 2017 when it was sold in the state of Missouri where the loan originated in, however when they got notice that we moved this year, all of a sudden in March the balance jumped to $7300 and has since gone up every month to where it stands now to approx $7900. Also reporting to the credit bureaus is completely inconsistent.
Why would a loan company wait 3 years to charge interest? Can they do that?
I would talk the entirety of your situation over with an experienced auto loan consumer law attorney. You can find some the the National Association of Consumer Advocates.
Right now we are recovering from job loss and homelessness so settling is not affordable with 4 kids. I can afford reasonably low payments considering the situation. Although, I have never had to deal with this ever and need a bit of advice as to what I should expect.
The amount you can settle for, and get payment terms, will vary widely from one person to the next. If you like, I can ask you some detailed questions in a phone consult that will allow me to tune up my feedback. You can schedule the call here: https://calendly.com/debtbytes/15min
3 yr old auto charge off through Ally, repossessed, sold, requested a debt validation, received their deficiency amount for 11,233.84 I want to negotiate a lesser amount to pay for deletion. Is this possible? If so how do I go about this?
Kristy
Pay for delete is not common with banks, but settling is.
What if the deal was around 40%?
How prepared are you to pay a settlement in a lump sum?
If you need time to pay, how long?
Can i settle a deficiency with the attonrney for a repossesion? Im trying to purchase a home and it is affecting my debt to income ratio. SC
Yes, but negotiating settlements when a collector can see you are trying to accomplish a goal, like buying or refinancing a home, is often harder, and the savings not as optimal. More on that here: https://www.youtube.com/watch?v=QpdDks73QUw
Can your income taxes be held if you’ve had a car repossed and owe a deficit
What state are you in?
Had a 2010 Toyota Corolla owed $14,000 on it, had it for 2 years good payment history. Car kept breaking down, even had to put it in the shop, which by luck of draw the mechanic dropped his light prob under the hood next to battery so happened to cross two ground wires bolted to the frame under the hood still next to the battery one of those ground bolts had been fractured. mechanic extracted the bad bolt replaced with new one and car worked again. but that was just one of the things these problems persisted from day 2 of pulling the car off the lot for the remainder of the 2 years my wife and I had it. Stress at this point is kicking my but i couldn’t afford to keep making the payments, and fixing the car all the time with stuff that to me as a 31 year old aircraft mechanic seems to be some of the most unusual things breaking down on the car i could find all kinds of stuff online for common repairs to 2010 Toyota Corolla but non of them were any of the problems. but i had 2 heart surgeries one in Oct. 2018 and one in April 2019 and just couldnt get bills caught up after being out of work recovering from surgery. Tried taking it to dealer ship because when i called they said they would trade it in for something cheaper but was denied a trade in because it they said they car is only worth 4,000 and we owe 14,000 so we would be 10,000 negative equity and then said to give it back to the bank file bankruptcy and bring in a co-singer then he will sale me another car. i never filed bankruptcy im scared to and im afraid of what it will look like on my record. but i couldnt find any other option it was pay the car payment and live in the car with my wife, two kds, and i or give the car back so we all can have a place to still live. Bank is saying it was a repo, i drove it up to the bank went in sat down with a manager handed over the keys so it was a volunteer forfeit. but they only sold the car for 2000, out of the 14,000 that was owed and why am i paying so much for a car that isnt even worth that amount.
We often settle deficiency balances like this for half or less.
Filing chapter 7 to get a fresh start, that it sounds like you could use, may be the best course, but if you are trying to avoid that, how long would it take you to pull together half the amount that is still left owing?
I am in New Mexico I had a car repossessed in July of 2008 the original creditor was credit acceptance after the car was gone they auction it off leaving us with a balance Of around 15,000 they hired a attorney sued us in 2015 they started garnishing my husbands checks November 2019 I’m wondering if the sol in my state had run out and if this garnishment is valid they are taking close to 2000 a month we talked to a bankruptcy lawyer he said we made to much money to file bankruptcy but this garnishment is a real struggle right now I did try to set up something with the attorney doing the garnishment with no luck they told me my only option was to pay the entire balance they wouldn’t work with us at all is there anything else we can do at this point thank you !
Judgments have a whole different SOL than when not sued for collection.
Judgment creditors are at their most confident they will get paid in full, and with interest if the court granted it, when they are garnishing wages.
You do not qualify for chapter 7, so would have to be able to meet your state guidelines for hardship exemption from garnishment, or leave the job, to make it stop.
No one is likely to leave their job, so if this is causing you an inability to pay for the basic necessities, contact the court clerk next week and see about contesting the garnishment.
Hi, Michael – I realize this is an older thread, but I hope you still will see this. Long before we were married – My husband had a car repo’d in 2004, for which he was subsequently sued by Americredit (GM finance) in 2007 and received a default judgment in Indiana. The original deficiency was $10,600, but with interest, by the time of the judgment, it was $17K+. He does not recall being served on this lawsuit. Fast forward to 2016, when he’s paid off all of his debt – having forgotten about the repo’d car – he received a notice of garnishment from his employer. He, again, did not receive the summons, as he was not living where they served it. By now, the amount due was over $29K, because of accrued interest. He was garnished for 6 months, at which time, we got married, and he moved out of state. Of course the garnishment stopped, since he was no longer at that employer, and he began working elsewhere (not in Indiana) 6 months later. The attorney for the creditor has not moved to have the judgment transferred. He has spoken with a consumer debt attorney in Indiana, and he does not feel that he can do anything to help him with anything regarding procedural issues/having it dismissed or closed. He does not think they will pursue any further garnishment, since they were not able to locate him after he left his job in Indiana (they do not know where he currently lives, but of course, we know they legally *can*). However, he did suggest negotiating a settlement with the attorney representing the creditor. He also recommended doing so on his own, rather than paying an attorney. The amount currently showing owed per court documents is $5300 (the original balance minus what they obtained during the garnishment), which of course does not reflect any of the accrued interest. If my calculations are correct, after he’d paid what he did during garnishment, plus additional interest since garnishment stopped, he’s right back at about $30K remaining on this balance. Kill me now. This debt is so old that is not showing and has not shown on his credit for years – his credit actually looks great on paper (thankfully). He’d like to settle this debt, so it’s no longer hanging out there. Unfortunately, our financial situation would only allow us to offer a max settlement (lump sum) amount of around $5K. Is there any chance the creditor’s attorney would settle for that amount? We do not want this hanging out there any longer, but short of a drastic reduction in the amount, there’s no way we can repay this. Bankruptcy seems to be the only other alternative. 🙁
I would look at chapter 7 for sure, if you qualify, and if you cannot get them to take what you can pay.
I will tell you that most judgment debt I have ever worked gets settled for between 50 and 80 percent. More on that here: https://consumerrecoverynetwork.com/question/can-you-settle-credit-card-judgements-like-other-debts-stressed/
Hi I took out a 2014 Camry in September or October of 2015 the total cost of the car was $30k that December of 2015 I voluntarily repo my car and took it back to the dealership where I originally took it out from because I quickly realized that I couldn’t afford the monthly payments on it and ever since I’ve been getting calls and mail saying I have a balance of $10,000 on it and after that I never found out what happened to that Camry I don’t know if it got sold from the market or what, so my question is will they keep bugging me until it’s paid off? Or after 7 years will it come off my credit history? I currently can’t afford paying anything on that since I do have credit card dept Ive been paying off and I have $7k left on my vehicle that I have now, not paying the 10k will it affect me later on down the road when wanting to purchase a house? Also I plan on joining the military but idk if that 10k will be an issue for me joining, what should I do about the $10,000 if I can’t pay it off or what are my options?? This is happens here in the state of Texas
You can often settle this for around half or less.
It will eventually age off your credit, but they could sue for collection.
You would not be able to get a home loan while this is showing as unresolved on your credit.
Talk to your recruiter about entry into service, but I don’t think this would hold you back.
Can a you be garnished automatically for a twelve year debt? The car was repossessed 12 years ago and now my waves are being garnished and I have another court date
Court judgments have a shelf life of their own that varies by state law. In some state they can last forever, as long as the plaintiff renews the judgment timely.
I live in florida. My truck broke down 11 pm at night. The only option i had was to tow it to the dealership. I never received a written estimate or any paperwork period. They had my truck 5 Months to do a job that should have not taken more than 1 week. I went into dealership with 1000 dollar payment and they refused to take it. They have now had my truck for a year. They cost me my 20 year business. This truck pays mortgage bills puts food on the table. Im now behind on all bills because of their 5 month holding my truck. Isnt a repair supposed to be done in a timely manner? I believe i got no written agreement because had i known they’d have my truck 5 months and demand full payment id have towed it the hell out of there. What can i do?
I would talk with an experienced auto loan consumer law attorney in your state. You can find some using the drop down menus here: https://www.consumeradvocates.org/find-an-attorney
Hi there! I have an elderly mother who purchased a used vehicle 8 months ago, even though she’s unable to drive. She overpaid about 2k and also agreed to a $2600 service agreement rolled into the financing. 8 months after purchasing she owes 10.5k on a vehicle that KBB puts at 6.5k private party sale.
I’m currently working on getting Power of Attorney for her finances. I want to turn the vehicle in. She has no assets (no r/e, no retirement accts, no investment accts). Her only income is $1200/mo from social security.
I intend to explain why she is “judgement proof” to the lender when I call. Hoping they see this as a dead end and don’t bother pursuing deficiency collection or judgements.
My concern is if they do, can they freeze her bank acct if her only income is from social security?
She resides in Michigan,
Appreciate any insight
She appears to be judgment proof like you say, and that means the social security in her bank account is protected.
You should know that explaining all that to the loan servicer is not going to stop the collection train from leaving the station. She just won’t be along for the ride.
I voluntarilysurrendered my car in 2015 and have not received info about the sale of the vehicle or who the collections agency is. I’m trying to get approved for a home loan but am denied because of the potential for a lawsuit for the repo. I need help trying to find out who i contact to get this straightened out. I am hoping to use my tax refund to make a deal. Any suggestions would be appreciated.
Start by contacting the loan servicer. If they do not have it, find out the name of the collection agency the sent it to, or who they sold the balance to. Post an update with what you learn and lets go from there.
I had a car repossessed in June 2014. The loan was through CPS. I haven’t heard from them and was wondering should i just leave it alone until I hear from someone?
I generally like taking the proactive approach if you are in the position financially to do so. And waiting could mean you get sued later, where you can still settle, but at a steeper cost.
How much is the deficiency balance? Is it showing on your credit reports?
The deficiency I believe is around $10,000.00 and the repossession does show on my credit report
I would target 35% of the balance. Can you pull that together in a lump sum?
My 80 year old aunt thought she was consigning a car loan for her son after 8 hours at Jeff dambrosia dodge in downingtown pa they said sign here and it wasn’t until they got home that they realized she was the only name on the loan. They never drove the car called chase and said come pick it up etc… it was repossessed a few weeks ago and is now getting cerified letter. -any advice?
I would talk to an experienced debt collection defense attorney in your state. I can email you some with the experience you need if you like? They all offer a no cost initial consult. What state are you in?
I live in North Carolina I’m currently dealing with Ford motor credit with a repossession that I almost halfway paid off no of any no cost attorneys hear in N.C. I could frfr use the advice
Check out the National Association of Consumer Advocates.
Hello, my husband and I surrendered our vehicle because we were talking about divorcing. The bank picked up the vehichle and then sold it with a balance of 1200.00 left to pay. We received a letter from the bank and then about a week and a half later we received a civil court paper in the mail. My question is what will happen? I had planned to call the bank the day we received the civil order but they were closed when I was able to call. I am worried they will take our wages or bank accounts for the money. Not sure what to do. We want to pay but don’t have that money just laying around and would need to set up payments. Will the courts help us to set up payment?
You can call the attorney office suing you and set up payments. The court is not the best vehicle to help you with that. Not unless you get a judgment and are uncollectable.
Hello Michael,
I live in NJ. I cosigned for my husband’s car loan through GM Financial in 2013. I became divorced in 2015. He did not make payments on the car and it was repossessed in November 2016. I received a deficiency calculation yesterday; the car was sold for $2200 and the remaining balance is close to $10000. I will be able to settle with a lump sum in a few months. My question is – can my ex-husband be compelled to pay half of this lump sum, or will it all fall to me as co-signer? Can I later sue him in small claims court for half?
I typically find you have to take care of this as a co signer on your own (unless the ex is open to helping from the outset). Then you have to take this back to family court if you are looking to change the outcome of assets and debts in the divorce.
I would be looking to settle for around %3,500. Now calculate the costs and time that may be incurred opening up the divorce.
I had two car loans with the same bank about 8 years ago. I surrendered one because my husband lost his job and couldn’t afford two car payments. 4 years ago I payed off the car I keeped they never gave me the title of the car because they said it’s cross collateral. So now 4 years after I payed the car they report it saying they are the owners and is they are treating me to sue me for the balances. I’d this even legal?
I highly recommend speaking with an experienced debt collection defense attorney in your state. I can email you a list of experienced attorneys if you like? What state are you in?
Hi ,
I am currently under wage garnishment in Fl for an old credit card dept. Now recently I been wanting to finish my school but need out of pocket money to start , I was thinking of doing a small loan against my 401k and pay it off with my paychek automatic. If i do this would be 401k loan also be garnished or obly ny paycheck
Talk to your HR or payroll department and see if they have had to deal with a similar situation in the past, and what they did about it. You can also talk with an experienced debt collection defense attorney in your state.
If I don’t settle or pay the deficiency will I be sued?
It is possible. Not all repossessions that result in a deficiency balance will end up in court for collection. And there are individualized factors that make someone more of a target to take to court than not.
You can prevent or eliminate this concern by proactively settling the account for less.
Hello Michael,
My wife and I are in quite a pickle. Our Nissan Altima 2012 is in the process of getting repossessed. We live in chicago Illinois. We currently owe 13,600 dollars left on the car and they are telling us that we need to pay the full balance to avoid repossession. Now we went out and got a loan for the exact amoun from a family member.. The problem is we have a good amount of credit card debt totaling up to 7000 dollars and I just started working a new job after the last few months that put us behind. Our Nissan is not in the greatest shape and I worry that it will not last without repairs for the next couple years. Should I clear our credit card debt first and get another car and start saving to settle the debt on the Nissan or should I outright pay the entire balance and keep the car? We are trying to figure out which solution would be smartest. Thanks for hearing me out!
Fill in the talk to Michael form in the right column Eddie. I will see that and email you to set up a time for a phone consult. I want to dig into your situation and goals more before suggesting what I would do in your situation. I do lean toward letting an unreliable car go back, but do not want you to make that decision without considering several things first.
I currently have 2 vehicles and want to turn in one of them due to income. It is state of CA and financed through Kia Motor and it was a lease, I am thinking of doing a voluntary repo I will have approx $15K deficiency balance, my questions are can they garnish my wages? If it is a $15K deficiency what is a realistic settlement amount? $4K?
I see more 30% settlements on auto loan deficiencies than not. If you go this route, be proactive with negotiating your settlement with KIA Finance or the collection agency they send it to. You can prevent any lawsuit risk that way. If you run into difficulty fill out the talk to Michael form and set up a consult with me.
I surrendered my car to the dealer i bought it from, i was financed by vw. I called the dealer to see if my payment could be lowed and if not i would have to file bankruptcy. I was told i need to do whats best for me. The reason i need payment lowered was i was going to lose about 300 dollars from my income to pay for healh ins. I took the car back and left it. My income consists of ssdi and a small kepers amt. My understand they cannot by law take any of my money. Is this true? Should i go ahead and file for bankruptcy?
Your social security income is protected, but you may have assets that still make you a collection target.
Is this the only debt you have? Are there credit card bills?
You might wait to see what the deficiency balance is after they auction, and then look at what it would take to settle, or just let it take its course, and then file bankruptcy if it reaches the courts.
I am almost to the point of a charge off. I am 100 days delinquent. I was just able to return to work after an unexpected surgery that couldn’t wait. But the job I accepted is only until end of Christmas. It’s seasonal. I don’t know if I will be able to catch up before work is no longer again..plus Christmas and them not being the only bills I have. I wonder if I should just let them repossess but I don’t want to be in the same shoes as the original poster of this question. I just got paperwork from the county court served yesterday telling me I am being sued from another collector. So wage garnishment is going to happen anyways. Even harder to live on half the pay. I live in washington state and filed chapter 7 in 2013 for medical debt mostly. And one credit card with 1500 owed. So I have no way out. I’ve been paying my car since 3/14 when I got it. $400 a month. And still owe over 13,000 on it..financed it for $14.5k. So I have put too much into into to end up owing it anyways if I don’t have the car. Any suggestions?
Gm financial is lien holder
Sometimes there is just no clear path to the relief you need. If you cannot make the loan payments, and turn in the vehicle, you could end up being sued on the deficiency balance. You then have to look to resolve the debt when your situation improves.
Hi. I bought a 2011 Ford Focus SES in July of 2012 and financed through Ally Financial. I did so with poor credit while underemployed which became unemployment in the Spring of 2014. My vehicle was not repossessed until December 2014. It was sold at auction in March of 2015 and I was informed of a deficiency balance of $8,644. I did not respond to it at the time. Fast forward to Summer 2016, and a debt collection agency named Synergetic Communications based in Houston began calling me in regards to the deficiency balance. I answered their call and asked them to send me proof of the debt. I even provided them with my current address, as I have moved a couple times within the same town in Connecticut over the last couple years, providing forwarding addresses each time. It has been three months since I made that request and I still have received nothing from them. I have not had my wages garnished and I also have not been served with any papers. For reference, I have lived and worked in Connecticut the entire time. Really, all I want to do is get this over with and move on. I am just not sure if I should make the first move, as I am not ready at present to offer a lump sum settlement for 30% (or more) just yet and would not for a couple months. I would appreciate any advice you can offer me
Debt collectors can take their time to respond to debt validation requests. Until they respond they cannot make additional collection efforts. They actually may never respond. The account can get placed elsewhere though.
If you are close to being able to settle this, keep saving up. You can be proactive and reach out to the agency again, or to Ally Auto Finance and find out if a different debt collector has the account.
My husband and I purchased a vehicle in NM and then later moved to NC in 2012. We defaulted on the loan and the car was repossessed in April 2014. We were recently contacted by the collections agency CU Recovery on behalf of the bank the loan was through–Guadalupe Credit Union. The amount of the deficiency we owe is $4300. The bank apparently sent notice of the sale of the car but sent it to an old address so we never received it or any other contact from them until we received the letter from the collections agency. They are pressuring me to borrow against my 401k to pay for a settled amount of $3500. I really do not want to do that so we offered to make monthly payments which would result in the deficiency being paid off in just over a year but they want us to pay roughly $1200 up front as a “payment” to lock in the following subsequent payments. We do not have that disposable income available at the moment (hence the offered monthly payments). My husband feels we should stick to our guns and insist that the monthly payments are what we can afford and do at this time. I am worried this will result in them taking us to court and garnishing wages. Even though NC cannnot garnish wages for auto loans, I believe because the car was purchased in NM, they can? Any advice will be helpful…
Your wages are protected from garnishment in North Carolina regardless.
I would hold out to settle for a lump sum of about 30% of the balance owed if it were me. How long until you can save up that amount?
We could probably have that in a couple months especially with Christmas bonuses. Do we just ask them to wait that long?
No, I would not ask. I would just wait until you have that amount in hand, or close to it, before you talk to them again. It may end up at a different debt collector by then, but that is normal, and also fine.
I was supporting my family and was a full time student. That is why I could not make payments. My car got repossessed and was sold for 11k. Now, I owe them 10k and they are demanding all the money right away. I can not afford to pay the whole amount. I dont know what to do now.
When was the repossession and auction? Who is the finance company? What if you could negotiate a settlement for less than half of the 10k? How long would it take to raise the money?
Hi Michael,
I had a repossession situation in ’14 in Pa. and have a court date for the 21st of this month with Ford Motor Credit. The attorneys office handling it for them called me to work something out but even if I do that it still has to go to “judgement.” Do I go to court? They are willing to work out a payment plan with me.
Thanks,
Dan
The payment plan route, once sued, can still end up with a consent to judgment. If you negotiate and settle for a single lump sum you can often avoid the judgment.
Are you only able to do payments? What if they took half? How quickly could you raise that?
I had a Jeep Cherokee that was repossessed in 2010. The last payment made was in October of 2010. I live in Georgia. Over the past nearly 6 years, I haven’t heard anything regarding the deficiency balance. In April 2016, I received a letter from the collection agency (Asset Aquisition Group, LLC) who bought the debt from United Acceptance. The letter stated I owed over $7000. In August of 2016, I received a letter from an attorney representing the collection agency with a different amount listed than the collection agency letter. Last week, I was served a summons for a lawsuit, showing the collection agency is suing me for $7200, $3400 for the deficiency balance and the remainder interest. I have 30 days to respond to the summons. Should I try to contact the attorney to see if a settlement can be reached (I don’t have any cash right now to offer, we just bought our first house) or should I just respond to the summons and go to court? Any other advice you have for me?
I would talk over your situation with an experienced debt collection defense attorney. I can email you a list of them in Georgia if you like?
How long do i have to start to pay back a car deficiency.
It depends on the situation. Can you post a reply with the details of your situation?
When did the car auction?
What is the amount of the deficiency?
Who is the finance company?
Is there a third party debt collector involved, and if so who?
I’m being sued for an auto loan, they say I owe late fees ECT. Now for 4 times what the loans was. I tried working with them. They won’t work with me. Taking me to court now.
What was the original balance owed? What are they saying is owed now? What is the name of the plaintiff?
Hello I am in tears! I just bought a new car about two weeks ago
And today I got papers from ford motor credit on a car that got repo back in 1997
It was dropped off my credit report
But papers say they can take my house and they sent a letter to my bank to garnish me.
I work at family daycare so I can just get my money in cash
But my question is can they come after me now? I live in Oregon not sure what the rules are here
Who got the judgment against you back then? Was it Ford that sued, or a debt buyer named as plaintiff? How much are they saying is owed today?
Hi All.
I was hoping you could provide me with some clarity regarding my situation. My car was repossessed about two years ago. Finally, i am in the process of building my credit and want to know what would be the best way of getting this off my credit score or minimizing the damage.
I called Honda Financial and they let me know I owe a deficiency balance of $1,300.
So my options are paying Honda in full or pay the debt collection company they sold the balance to. I’m sure i could negotiate the balance down or set up a payment plan with the debt collection agency.
So i guess my question is, Who should i pay and how do I ensure this come off my credit or shows up a satisfied.
Any help would be greatly appreciated!
Thanks
You can settle the Honda Finance balance with the collection agency they sent the account to. That will result in your credit report being updated to show a paid collection, and then you can go about accomplishing your credit and finance goals.
Who is the collection agency?
Hello, I live in north Carolina and was currently served a summons to file an answer withe court about an auto repo session. The suer is an atourneys office. My questions are….
#1. Should I file an answer or just ignore it? I DO NOT have the money to pay or to make payments of a decent amount.
#2. Once a judgement is placed against me, can my wages or taxes be garnished?
I have read that in the state of NC they can not garnish for consumer credit.
HELP!!!
Check out this recent video from John Oliver:
I would file an answer to delay the outcome in the hopes I could pull together enough money to settle.
Your wages cannot be garnished in North Carolina.
I am not certain about whether your state tax refund can be intercepted over a judgment. Michigan allows that, and I think a few other states. Check with a debt collection defense attorney in North Carolina on that.
2 years ago I purchased a 2014 Jeep Patriot in Arizona and then this past December moved to Michigan for a new job. I did fall behind payments, due to loosing my job, and when I was offered a job in Michigan I moved. The the car was repossessed on Thursday, July 28, 2016. My loan was through Chrysler Capital. They told me they plan on auctioning off the vehicle and then I would have a deficiency balance to pay off. Chrysler told me that they have a specific department that allows me to pay off the deficiency balance monthly. Now is this true or is a deficiency balance then sued for in court? Also I am planning on moving overseas at the end of this year, can I be sued while I am living overseas and making my full income overseas as well? Any help would be greatly appreciated.
You can make payments on a deficiency balance, but I am a fan of settling that leftover loan balance for less so you can save money. The damage is already done to your credit, and you essentially have nothing to gain by paying off the full amount, but can improve your overall situation and eliminate the risk of being sued by settling.
It is unlikely you will be sued when out of country. If you have not paid or settled by that time I would communicate that fact with them when you leave, or shortly after.
My vehicle was repossessed. There was a human error in between me and the insurance which made a lapse of 49 days. Department of insurance from the lender had not informed me until the car was repossessed.
The lender stayed with the vehicle for almost three months. They were not able to sell the vehicle and the vehicle was returned to me unconditionally but I paid the three months they had it.
Can I sue for damages?
Talk to an experienced auto loan and lemon law attorney in your state. I can email you some if you like? What state are you in?
My father co-signed an auto loan over 15yrs ago for me. I got behind on the payments so the bank repossessed the vehicle. My father has a property lien currently for the unpaid balance. What can I do to get this off lien off his credit?
The lien is the result of a court judgment. You will have to address the judgment.
Look up the the lawsuit in the court record. Who is the named plaintiff? When was the judgment entered in the court? How mush is the judgment for, and what did the court set the interest at?
Ok I have to apologize, I just posted about my son and daughter in law moving to Pa with a followed garnishment. Apparently the car was obtained in Virginia while living there for a year. They moved to NC, wages garnished there, then now in Pa. Can the garnishment be stopped through bankruptcy? Can their bank acct be levied?
Wages are protected from garnishment in Pennsylvania (and North Carolina).
How much is the balance owed today?
Thanks, I believe the amt is close to $10,000. Are the garnishments protected even if the vehicle was purchased in Virginia?
The state the vehicle was purchased, or even if the repossession happened in a different state, would not change the wage garnishment protections. You do have to assert your rights sometimes though.
Can bank account be frozen if gm financial gets a judgement against me for a car repo??
Thanks
In most states they can freeze or levy your bank account if there is a judgment.
How old is the judgment? What is the amount owed? What are your goals for resolving this?
My son and daughter in law moved to Pennsylvania from North Carolina a year ago and a wage garnishment for a repoed car or a voluntary return (not sure which) followed them. The garnishment is my daughter in laws and is approx $500.00 a month. They had a bad time of it in NC and we just wanted to help them with a fresh start. From what I understand, there was a judgement approving a garnishment in NC, can that follow them? They were considering bankruptcy, is that an option for them? They just can’t seem to get ahead. thanks
Hello, my name is Nate. My question is about hopefully a SOL barred time. I live in Iowa and purchased a car back in 2005. In 2008 in got repossessed due to defaulting on the loan. The car loan was thru M&I Bank in Wisconsin. It went to auction and was sold, the remaining amount that was owed was 11K. Since then the bank has sold it to a couple collections agencies, but it has never appeared on my credit report. Now early 2016 I got served papers and now have a judgement just this last month. The judgement is for 14K and I am wondering what’s the best advice. I have cleaned up my credit report so I can work on purchasing a home.
From what I can tell, the SOL to sue on a written contract is 10 years in Iowa. You would want to defend a collection case this old, or settle it for the best savings possible.
Did you file an answer to the lawsuit?
Who was the named plaintiff?
If negotiating a settlement is your goal, how much money can you pull together?
Hello, my name is Jessica and I am from Illinois. I recently had a voluntary repo on a car. The deficiency balance is 6 grand which I am being sued for. My court date is next Tuesday but I am meeting with a lawyer tomorrow. However, am I able to file bankruptcy on and add this debt to it if I am already in the process of being sued. I received a letter in the mail regarding the remaining debt after the car was auctioned but didn’t hear anything else after that. Then, my mother calls me saying that she just got served my papers to go to court at her house?!?! I wonder why they didn’t serve me at my home…
Also, is their a big difference on involuntary/voluntary repo when it comes to suing? I am also a single mother of two with a very low monthly income right now so I am just not sure how I am going to repay this debt. Thanks in advance for any help you can provdie.
There is no difference between voluntary or involuntary repossession once you get to this point of collection.
You can indeed include this debt, even though you are being sued for it, in your bankruptcy filing. I would hate for you to file over just this debt though.
Are there other unsecured debts, and if so, how much does that all add up to?
I bought my ex-wife a vehicle back in 2010 and we got a divorce. I had to finance it in my name because of her credit. When we got divorced, the car remained with me and then quickly broke down. I was unable to have it repaired and allowed it to be repossessed after 75 days delinquency in April 2015. I received a letter saying it was being taken to auction in Atlanta, but then never heard anything else about it until yesterday. I received a letter from a collections agency, trying to collect on behalf of TD Bank, for over $11,000.
I have no idea what I should do. I know I can’t pay $11,000 and I do not have anything currently saved up to even be able to settle because I am just now starting to work a job that is allowing me to get where i can live comfortably.
Should I contact the collections agency?
Would I be able to make monthly payments?
I need help because I am trying to get stabilized financially for the first time since before my marriage and I don’t want to lose all my additional income that I am now making because I have other non delinquent debts (car, credit cards, student loans, etc) that also must be paid.
Thanks in advance!
How long will it take you to get 4k together in order to put the deficiency balance from the repossession behind you?
Honestly, I’m not sure. I’m in the process of moving due to getting out of the Army… my budget is kind of fluid and ever changing right now until I get moved and settled in a couple months.
Depending on who the collection agency is I would wait until you have access to roughly 4k in order to settle it.
Who is it that has the account right now?
I would have to check when I get home because I was so agitated that I just glanced at it and put it with my personal documentation. I would like to do that and be able to give them 4,000 and be done with it up front. How long would it take typically before I would be in danger of having a judgement placed against me? I just don’t want them to have my wages garnished or place a hold on my account so I don’t want to wait too long to try to settle.
You can be sued at any time, but I can often tell if the risk is right around the corner by who it is that is trying to collect from you now.
If you can raise the roughly 4k to settle in a short period of time you will be able to prevent all of that.
Post an update when you can and lets go from there.
sorry for the delay. I didn’t have an opportunity to get online last night. The company is Northstar Location Services, LLC.
Give me a call Carl. I can help you. I am at 800-939-8357, press option 2. You can also reply to the notification emails you get from the site, those all come directly to me.
Please can you help me,I’m in a similar situation.
I removed your email address Carla. You can fill out the talk to Michael form in the right column of this page. I will get that and email you a time to set up a phone consult.
Hi Mr Bovee,
I would love a little help with a deficiency question. I have a van and it’s worth about 9,000 and I owe 14,000. I can’t afford payments and want to get rid of the vehicle before moving from CA to NC in a couple weeks. If the lender won’t settle, I’m considering doing a voluntary repo. My question is what do you think are the chances the lender will sue and that a deficiency judgment would follow us to NC. Thanks for any help!!
Ali
Ps it’s very noble of you to help people on here without pay! Thank you!!
It depends on the servicer, or the debt buyer that may buy the legal rights to collect on the deficiency. I typically do not see lawsuits on this type of debt happen very quickly, but they do happen.
If they know you are in North Carolina it will increase the odds that you can be sued there, but they will only have three years to do it (as opposed to 4 years in California).
You will have this balances follow you around as unpaid on your credit reports for 7 years, so may want to settle the balance for less than you owe for that reason too.
You may want to save up money as you are able and look to negotiate a low lump sum settlement down the road as your situation allows for.
I guess I need to talk to someone in Florida law. Due to Obama Care and the rising cost of Deductibles and co-pays, I can’t make ends meet. My medical expenses have now made me make a decision to either get health care and not eat Bologna sandwiches or continue top ay for the RV Camper that I’m living in.
My question is, Can my camper be repoed on the spot or since I live in it, do they have to forclose as in a house?
Thank you for your time!
I would talk to an experienced consumer law attorney in your area. Would you like me to send you a list of attorneys in Florida that can answer the questions you have?
I would really appreciate it if you posted an update of what you learn. Your issue can be common in Florida and surrounding states.
Thank you for the guidance. I hope to make the best decisions yo resolve what I created.
Hello again Michael. I followed and read the link on your info regarding bankruptcy and finding g an attorney. Very helpful info.
Do you have a list of suggested attorneys in my area ? (Apple Valley, Ca)
Should I call NuVision to discuss a settlement?? Even though I could only come up with maybe 3k , and the Current deficiency is over 16k. Or should I save that money to use on an attorney ?
Should I begin the consultations immediately or wait to see if NuVision proceeds with filling a suit?
Do you think I will lose my home (upside down over 35k) or car (0 equity on vehicle/loan) or possessions if I file for chapter 7?
Thank you for your time. It’s amazing the amount of help you are giving.
I would save that money to pay for bankruptcy.
You can connect with a local bankruptcy attorney using http://www.nacba.org and can also call 800-939-8357, option 3 connects you to a bankruptcy resource.
I would look to have one or more free bankruptcy consults now, but you may not need to file until your credit union sues, or the divorce progresses to a place where your able to qualify for the chapter 7 means test in California.
You would not lose the underwater home in a chapter 7, nor the car if you do not own the current one you drive. Many possessions are exempt and protected in bankruptcy. Talk that over with the attorney(s) you consult with and get a feel for what may be at risk, if anything.
I live in California. I purchased a new vehicle in may 2015 and felt financially secure with the large payment due to my husband and my income. By Dec 2015 I had to voluntarily surrender the vehicle due to the upcoming divorce. I would not have been able to make the large payment on one income. He was not on the loan. And I wouldn’t seek holding him responsible. It was my purchase.
The vehicle auctioned in February of 37k and that left a 16k defdiciency. I got the letters of the balanced owed and today a call from the lender saying that due to 120 days no payment , they need a answer or it goes to collection attorney to file a lawsuit.
Now I’m scared s***tless. No clue what to do. I have a child and 1 income. In the middle of a divorce. No extra income to pay even half the balance if it was agreed to even settle at half. I could maybe flex 100$ per month to pay on a 8k settlement, but that’s most likely an impossible settle amount. Is bankruptsy an option? Can I pay an annual installment of 1 k per year when I cash out my vacation? Should I remove my money from banking?
The divorce is being agreed that our own personal devts, accounys, etc are our own and not shared.
Any advice would help.
Who is the lender on the car loan?
Chapter 7 is a good option compared to what you have to work with if you were to settle. Do you have other unsecured debts, like credit cards, store and gas cards, etc? If so, how much do those add up to?
There is no way to do an annual installment like you suggested, nor would I want you to.It is best to put together a lump sum and offer that as a settlement.
There is no need to change how you bank at this time. They have to sue and get a judgment before we worry about that.
Post your follow up answers and lets go from there.
The lender is NuVision Credit Union.
I have $3,400 balance e on my wells Fargo credit, $700 on a Care credit card (medical) and this is all. Then there is my house. It is underwater..value of about 85k and balance of 119k.
I have always been responsible with finances and my credit has always been good. This is the first time I have been in hot water and why I am, for lack of a better word, ignorant as to how to fix this.
Generally how long does it take to sue and get a judgement ?
A quick chapter 7 search showed tgat I may not qualify due to still being married and his income. Might qualify for chapter 13, but still in a boat to repay.
From all that you shared it sounds like chapter 7 is the route that will offer the most relief, and when you need it most too. Smaller credit union debts can be very difficult to negotiate for much of a savings, and when you lay on the other debts, and the underwater house you could walk away from, I really like chapter 7 as a debt solution for you.
I would not like a chapter 13 for you.
I want you to consult with an attorney about chapter 7. I want you to read this article first: https://consumerrecoverynetwork.com/find-bankruptcy-attorney/
The timing of all of this is going to be something you can likely coordinate, but talk to the bankruptcy attorney about the issues with the divorce and the income qualification.
I live in Wilkes Barre, Pa and purchased a 2005 Hyundai Tucson from a buy here pay here place in July of 2015. Since the purchase, they have had the car more than I can count. Their answer to me is that I have an “electrical demon” in my car and I’ll have to take it to a dealership.. I have also put the car in the shop on my own to try and figure out what is wrong with it. My mechanic told me he thinks it’s a vacuum leak of some kind but it would take time to find the problem and who knows how much $$. Considering I’m making payments on this car, I don’t feel like I should pay to have this problem fixed. Lemon Law in Pa. states that my “right” to sue is up after 3 years of the year of the car…and I didn’t buy it until 2015 so that’s out. But, if the same problem has not been fixed and the dealership has tried at least 3x, I can file a complaint with the Attorney General. That’s fine but, what do I do with no car now, because we all know that filing with the Attorney General will take forever. So, I’ve been thinking of driving the car back to them and giving it back. I don’t want this headache anymore. My question is how do I get out of this loan? How do I stop making payments ? Anything you can suggest would be great. I am more than willing to talk to an attorney but don’t know where to find one where I live. I just need the knowledge so i can make a decision. Thank You in advance for your time.
I sent you a list of attorneys you can reach for a consult. All of them have experience dealing with automobile consumer law issues that you are experiencing. Talk with one or more and let me know what comes of any of it.
Hi. I want to start by saying I appreciate this question and comment section. I am from Pennsylvania. In December, 2015, I had a car get repossessed. I received initial certified sent paperwork in the beginning of January. It made me aware of the possible sale of the car, and that I could still reclaim the car at that point. I had already spoke to the lender before this paperwork arrived stating to the lender that I would be letting the car stay in repossession since I could not afford the payments on the car. Jumping to this week. I had yet to hear from the lender on the sale of the car and the balance notice. I called the lender and they had a settlement offer, they also said they had sent paperwork. We confirmed the address, but I have yet to receive it. I asked for it to be sent again. This leads to my first question, is the lender required to send a notice of deficiency and sale of the car in a certain time period? If so, what would that time period be? If it is past that time period would I be able to use that in a fight against this debt?
Secondly the settlement offer that I was told over the phone was for the balance to be paid in 6 months. What happens if I can’t pay the balance in full? They told me they would review it in 6 months.
On a side note to this. I have a joint account with my fiancée that we use to pay her mortgage (the house is only hers), and our bills for the house. I have read that a bank can freeze accounts with my name on them. Should I take my name off those accounts now? Or at what point in this would I need to worry about accounts being frozen.
Lastly, since I don’t believe I will be able to pay the balance off in 6 months, but can pay a portion off, should I consult with a lawyer? debt service? or maybe another option that I am not aware of?
Thank you for the time.
Most of us are not prepared or of a mind to take a “fight the debt” position. There is nothing all that productive in your situation that has happened yet, even if you wanted to take that approach.
If you cannot pay the balance, there are usually options to settle deficiency balances that result from repossession. Forty percent and less are typical targets I would shoot for when negotiating. Those targets can change depending on the lender or debt collection agency handling the file. Who is the lender for your loan?
Your bank account is not typically at risk until you are sued and a judgment entered in the court. That may never happen, but does occur enough to suggest resolving the debt earlier to avoid it, but only if it is financially viable for you.
You can negotiate these settlements yourself. Some people would prefer to use a pro. If you want help call in for a consult at 800-939-8357, option 2 rings to me.
Hello I live in Philadelphia, I had a 2007 Chrysler 300. I gave back the car in 2010 because of job loss.My Grandfather was a cosigner on the loan.We never received any notice or warning. On 3/16/2016 they levy my account stating I owed 13,989 dollars. What can I do to release my account
Look up the your name in the county court. Post a reply with the name of the plaintiff that sued you, the law firm that handled the case, and the date the lawsuit was originally filed.
I can offer more detailed feedback once I know that information.
Background Info: State of AZ: Voluntary Vehicle Repossession
After falling behind on payments, the vehicle was voluntarily surrendered (9/15) with a balance of approx 12,500. Yesterday a collection letter was received from an attorney’s office to recover 9090.67. Prior to this communication, nothing else has been received and there has been no further communication from the lender.
Referenced Research-
Creditors have the right to sell your car after repossession to satisfy your obligation. In Arizona this sale is called “redemption of collateral.” The sale typically is performed at a public or private auction. According to Arizona Statute, the sale must be performed in a “commercially reasonable manner.” In other words, the lender should make all attempts to sell the car for at least its fair market value. Accepting less than market value for the car can indicate the sale was not commercially reasonable, and therefore in violation of the law.
Prior to selling the car, the lender must notify you of the date, time and location of the auction. Arizona law gives you the opportunity to get the car back at any point before the sale by paying what you owe, plus repossession fees and legal costs.
After researching, I assume this is the”deficiency balance” of the vehicle, however- I’m not sure of the justification behind the 9090.67. I want to address this BEFORE they take legal action, and since I believe the lender failed to follow my state law; I’m unsure if a debt verification letter is appropriate in this type of situation. Any words of wisdom are much appreciated. Thank You!
FMV on a repossessed vehicle at an auction is usually well below trade in value. That is normal. I would not pursue this angle with an monetary resources. But the right of redemption is something I would look into. I would suggest you connect with an experienced debt defense or lemon law attorney in Arizona. I can email you a few I know of if you like?
Debt verification is a waste of time if you are trying to be proactive.
I had a repo back in 1998 with Ford Motor Credit. The balance I was sued for was 10K, by MacDowell and Assts., it took them many years to garnish my wages back then, I then lost that job and worked for myself for about 6 years and never heard anything from them. I have been at my current job for 3 years and they creeped back into my life with another garnishment that started out at 25% of my wages. I filed papers against the 25% and we had a court date to reduce the garnishment and agreed on $300 month. The current balance is close to 30K. What are my best options to get rid of this debt? I am in California.
Ideally you will want to have half or more the amount owed in order to negotiate a settlement. If you leave the current job it could take a while for them to find you again, and that would be a good time to negotiate too.
Can you pull together enough to offer a lump sum settlement?
Hi Jim, I too have the same situation. They are relentless, not to mention the absurdly inflated balance. It is 2 to 3 times more than the car (2005 taurus) would ever be worth. What a racket they’ve got going.
I was served papers of the original lender suing me for deficiency in the state of Florida. The balance of the loan was 23,000 and they sold the car for $12000 in October 2014. They are suing me for $11000 plus legal fees and I have 20 days to answer. Should I respond to this or just let them get a judgement and try to settle later. My question is are they able to garnish my wages? I do not want to file bankruptcy, but if they garnish my wages I don’t have a choice.
Who is the original lender that is suing you?
You have pretty good wage garnishment protections in Florida for head of household. How long would it take you to save up 4 to 6 thousand dollars?
My husband and I bought a car in 04/2008 with a credit union in Dallas, Texas. My husband lost his job in 09/2010 and the payments on the Lexus were to high for us to maintain. By 12/2010 we stopped making payment. The amount charged off was $10,586. We have never been sued, it was never transferred to a collection agency. Still with the credit union. I checked my credit report last week and the amount is now at $15,139. Experian states the account is scheduled to continue on record until oct 2017. I was thinking of writing them a letter to settle for a certain amount. My question is should I ask them to remove it, paid in full, take charge off off the report? That’s if they even take the amount I am offering. We have done lots of cleaning on our credit and this is basically the last thing left.
I put a video up this morning on the topic of offering to pay collections to get it removed. Watch that back to get a more thorough answer, but no, you should not offer to settle in order to get the charge off deleted early. They will not agree, and you are often giving the debt collector leverage when you do that.
I would not send any offer letter. You typically want to negotiate the deal on the phone, and then get the agreement in writing before you pay.
Sending in offer letters is just not productive in most collection cases.
Good evening ! So I financed a car in April of this year and I have made my payments on time for 6 months. In November my transmission went out and it will be a $3000 repair. (Warranty has expired) I don’t have that kind if money and with my current income and and bills I wouldn’t have that money saved until July of next year. I cannot be without a car that long because of work. I would just like to know my options, whether it rolling the negative equity onto a new car loan which is a bad idea, or doing a voluntary reposession. And what would follow suit if I do that ? I live in Ohio if it matters. Thanks !
Do you have any cash to buy an old but reliable car? Something along the lines of 1200 to 1500?
I do, I’m buying a vehicle from my uncle because I can no longer be without a car. And I have already started the voluntary repossession process. Yes it will be on my credit for 7 years but that can always be repaired, and i intend to pay back the balance. Im young and I shouldn’t let this stress me out like it has been for the past 2 months. Now I just have to play the waking game to see how much money I will owe and if I will be garnished or not.
Hi Michael, great source of info here. Here’s my question added to the mix:
I’m in Illinois. I had an involuntary repo in May 2010, hard times and all. Payments stopped in March 2009. There is a deficiency balance of $12000, which is reporting to the credit bureaus. I was never sued (and its outside the statute of limitations of 4 years now anyway), and there are no judgements against me. They never sent the debt to a collection agency. It seems they just gave up, which is strange, because a quick search of my county court system shows a weekly batch of lawsuits from them.
The creditor never gave me the required documents when they repossessed the vehicle. They cannot claim the deficiency if the required paperwork was never given to me. I disputed the credit reporting recently. The credit bureau responded with “debt verified”, and the creditor responded by mailing me those required documents, nearly 6 years too late. They even sent copies of the envelopes they say they used, only they’re marked undeliverable, return to sender. I did move, but they knew exactly where I was, they repossessed the car from the new place. Basically, they shouldn’t be claiming a deficiency when they never followed the process.
Can you give any insight as to how to get this deleted from the credit bureaus? 7 years is right around the corner, but the sooner the better. Also, if my line of thinking is wrong, please let me know.
Thanks!
I would talk your situation over with an experienced FCRA attorney to see if you have something you can pursue, or that they may be able to help you resolve. I can send you an email with any contacts I have with the experience you need. Post the name a nearby large city.
Sure, Chicago. Thank you.
Hi, I bought a 2008 Jeep Liberty in April of 2014 in my home state of Maryland. Shortly after I moved to Florida and had a new job; but working off tips, it was a slow transition. I fell behind in payments and the car was repossessed. I received a letter in the mail, busted my butt, borrowed from friends and within 2 weeks paid the fee to get my car back. Naturally I still had current payments that had to be made and friends to pay back. It was unbearable. I just recently got a new job where I will be making over 1k a week, and I just put money in the bank and made a payment towards my jeep; I believe I was 90 day delinquent. I was just recently locked out of my Toyota account and when I called was told that the payment was reversed by Toyota and unless I could pay the full amount owed that the repossession was already under way. At this point it is a headache. I put myself in this situation and am fully prepared to just let them take it, go about my business and make my 1k plus a week, uber here and there, save money, and if I really need a car later go to a pay here place and buy one all cash. My question is how long does this process usually take with the deficiency debt? I would much rather someone call and say look this is what it was sold for this is what you owe and me work out a monthly payment or just pay it all; because within the next month or so I will be able to, but I am scared of garnishments and bank account freezes that Ive read above. So I guess Im asking for a timeline, and if they at least try to make contact for repayment before its immediately taken from your accounts and now rent isn’t paid. Thank you for your time and listening to a strangers problem.
The amount of time it takes for a the repossession to occur after payments stop can vary. You can sometimes expedite that by calling and arranging to voluntarily turn the car in.
Once they take possession of the car, the time it takes for them to auction off the vehicle can vary. There is nothing you can do to move that process along.
You will be notified shortly after your old car is auctioned about what you owe on the deficiency balance. You can avoid being sued and all the problems that go with that by being proactive at that point. And it sounds like that is your intent.
Will do. Thanks so much for your input Michael. It is much appreciated.
In 2000 I co-signed on a GMAC Chevy car for my sister who lives in Florida. I live in NYC. About two years later my sister turned the car in when she could not afford the payments. About six months later I received a letter from GMAC stating they auctioned the vehicle for $6,000 when they valued it at $12,000 so I owed them $6,000. This amount I never paid since I thought they received their car back. Several attempts were made over the years to collect the debt which I ignored since I can’t even afford a lawyer to date. Today Citibank told me that GMAC sent a subpoena and that my debit/checking account was frozen until I called the GMAC Collectors. I haven’t called as yet but can I be liable in NY 13 years after the car was turned in? Can GMAC garnish my wages in NYC? Thank you for your help.
The only way they get a bank levy like that is if they have a judgment filed against you. Do you recall ever being sued for the debt?
With a judgment in place they can garnish wages in New York.
Can you tap into resources in order to come up with, say half of what is owed, and fund a settlement for 3k?
If you were unaware of the lawsuit, it may be a better to look at what you can do to “unring” that judgment bell.
Many years ago they sent me a subpoena to appear in Florida for a hearing for the monies owed to GMAC. I had no money to travel or money to retain and attorney and I did not go. This judgement would still be outstanding even though I signed the loan agreement in 2000?
Michael I do not have a 401K or any other source of deposits that I can tap into. It does not look good.
Operate on as much of a cash basis as you can until you are close to having half of what is owed, then negotiate the settlement.
The alternative is to get a payment agreement set up, but the math favors settling.
Okay, thanks for those details. I would probably look to settle the debt for the best savings possible if it were me.
Judgment debt does not expire like you are thinking. It can be renewed, and sometimes last forever. It isn’t going away.
If you need help with this give me a call using the hot line. Option 2 rings to me.
I am about to surrender my vehicle as I can no longer make payments on it due to financial hardship. There will be a considerable deficiency left and I am sure I will be sued for this. I am a homeowner and live in PA. My husband works in New Jersey but lives in PA. So my question is two fold, can they garnish my husband wages because of where he works and would it be in my best interest to file for bankruptcy?
I would talk to an experienced debt collection defense attorney in PA about whether or not NJ wages can be garnished for a PA judgment with the debtor residing in PA.
How much is owed on the card today?
Do you have other unsecured debts like credit cards, and if so, how much does it all add up to?
You may be able to settle the deficiency balance after the vehicle is auctioned. Sometimes the savings you can negotiate is significant. If you are able to save money over time, or access a lump sum of cash along the way, you can avoid bankruptcy. On the flip side, if you are struggling with other bills this may be the perfect time to eliminate financial stress and get a fresh start through chapter 7.
The dealership rolled in $10K deficiency into the $24K loan for a staggering $34K.. I’m sure that they’ll only get about between $13-$16K for the car at auction which will leave me with about $20K in deficiency. I have only two credit cards with about $5K on them.. At this point, bankruptcy seems like the only answer as I can’t afford for them to garnish wages. I also don’t want them to put a lien on my home.. Thanks for you help.
It can take a while to be sued for the deficiency balance on a voluntary repossession. Some people are never sued. They would have to sue and get a judgment before they could garnish wages or lien a home. You could negotiate a lower pay off all along the way.
Having said that, bankruptcy may be the best option to just put this, and the other debts behind you. I suggest you read my article about finding a good bankruptcy attorney and then call to consult with a couple.
You are not under any pressure to file right away, but get the consults out of the way and you will likely feel a lot better once you learn that you qualify for chapter 7.
In 2004 I bought a car from gmac for my sister. I then went off to the army. I was never told that my sister stopped making payments and the car was repoed in 2008. I never received any contact from gmac or collections about the car. In 2013 a collection agency showed up on my credit report in reference to a $6100 balance for the car. I disputed the claim and it was removed from my credit report. All of the sudden (a few days ago) I received a collection letter from a collection agency demanding payment of $6153. I don’t know what to do. The car was purchased in Minnesota and now I live in georgia. Hasn’t the SOL already run out? Please help. My wife and I are trying to buy our first house.
The SOL to sue could have possibly run, but any credit reporting of a repossession may not have. What is the name of the debt collection company contacting you? Is there a repo showing on any of your credit reports as of today?
the collection agency is Northstar Location Services, LLC.
I also talked with my sister and mother about the repossession and time frames. According to my sister, she stopped making payments on the vehicle in the beginning of 2007. She said that she made the first two months before stopping, which means her last payment would have been around February 2007. She (and my mother confirmed) that the car was repossessed when no one was home around the end of the year in 2007. She could not remember exactly when, but said it sometime between October and December of 2007. Both my sister and mother claim that GMAC made no effort to send any lack of payment letters, bills, collection notices or anything between the time payments stopped and the car was repossessed.
Since I was in the army and away at basic (i.e. no contact allowed) I had no knowledge of the issues with the vehicle. When I bought the car for my sister, my mother had to give permission since my sister was underage at the time. The dealer at GMAC had knowledge that the vehicle was a gift for my sister and that she would be making ALL payments for the car.
I would like to send you a copy of the collection notice I received if possible. How do I get this to go away? At the current moment, there is nothing on my credit report, however the report will be updated at the end of the month. What do I do when/if it shows up?
I do not think you have anything to worry about Alex. It appears form the dates and details you provided that the debt from the repo is too old to be sued upon legitimately, and is just old enough to be dropped from your credit reports. That does not mean debt collectors stop trying to collect, and that is why you got the collection letter from Northstar Location Services.
If the debt appears on your credit again post an update and I can help you from there.
ok I will. Thank you for settling my fears and for potential future assistance.
Hi I live in NY and my husband cosigned for a car loan in 1999 however 2 months after that unfortunately he got arrested and spent 10 years in jail. Today his accounts are on hold and are -$40,191.00. He was of course unable to make payments and he’s not sure why the borrower didn’t pay for the car and has no communication with him. My husband claims he never received any letters and has no idea what to do. Please help, ford motor card put a levied all of our ccounts. What can we do? Thank you
I would encourage you and your husband to call in for a consult. You can reach me at 800-939-8357, choose option 2. I have several questions about where things are at with you both today before I can offer the detailed feedback you need.
I got an $11,000 auto loan by coastal credit. I was unemployed for about two months and fell behind by 1 and 1/2 payments and 43 days. They called, emailed, and texted every single day and finally repossessed the car at 43 days. I tried to email the lady who was emailing me and ask information and she pretended like she didn’t know me and then kind of blew up on me, being extremely sarcastic and eventually saying, “oh yeah, I remember you!” They sold the car without telling me where but did say when. My debt was still almost $8000 and now 6 months later they are saying I have an additional $900 in interest. With that much interest I will never be able to pay off that debt even if I were able to start paying right now. All of this feels wrong and I want to know what my rights are. It doesn’t seem like I should owe nearly the entire loan and with interest it will be more since they took the car and sold it. When trying to work with her she would tell me, “we can take the car if your one day late.” I’m in Colorado.
I would question the interest accumulated being so high in 6 months.
It is normal to have the deficiency balance after the car is sold at auction. Those repo auctions are known for the low sale prices. It is entirely possible to see your car sold for that low, leaving that large a balance owed.
I am sending you an email with a list of Colorado attorneys with repossessions as part of their practice. The first 3 in the email specifically, and the rest generally through legal assistance with debt collectors.
I’m from Nj and my car was repoed on January 12,2009 with my mom being the cosigner. I’ve been having this deficiency balance of $7,000 sold to a few collection agencies and just recently a new agency has called me to collect. I feel as though the value of the 2005 Honda Civic I had at the time value is way lower than what they are trying to collect as of now, I also feel as though that the price they sold it for at the auction should have covered the value of the car. I feel like the remaining balance they are trying to collect is just interest. When they repoed my car the balance on the car was $17,000. At the time I was young and dumb and a first time car buyer .I never did my research on financing a car, I wanted to know if they can still take me to court and if so what other options do I have to solve this matter because I feel as though the remaining balance they are trying to collect is ridiculous.
There is a six year SOL to sue on a written contract in New Jersey. That would put your deficiency balance on the repossession outside the debt collectors ability to legitimately use the courts to get you to pay.
You would be able to get a fairly decent settlement on this if you were motivated to resolve the debt.
Do you have any credit or financing goals in the next year that this is going to hold you back from?
I was just served papers stating that I owe a 10k balance on a car that was repossessed back in 2010.
Is there anyway to pay $20 a month as me and my family are challenged for money. It was bought to the supreme court in our county. I’m based out in California. Could you refer me to someone to help me with this situation.
Give me a call at 800-939-8357, choose option 2. I want to go over your situation and help you understand your options more fully. Sending $20.00 is not going to get you where you need to be.
I got a car back in Oct of 2008 with my aunt as a cosigner. In aug of 2009, I lost my job and I wanted to give it back to the bank but my aunt decliend saying she would pay on it and picked the car up.
I found out in June 2011 that the car was repossed and my aunt was demanding that I give them money for her having her wages garnished. Long story short, my aunt ended up filing bancruptcy in 2011 and just last year in Nov 2014, the bank started garnishing my wages. I am a low-income family on government assistance and decided to challenge the garnishment. The judge denied me and said that their attorney was willing to work with me on the payments. I called the bank yesterday after the court hearing and they said i owe 13,500! The baalance on the car when it sold was 3,500! I asked them how in the world were they able to take on 10,000 and the attorney told me I have interest on it at 35% and for refiling fees. I once again explained to her, I could not afford that and i was enver notified of the car being repossed or sold at auction. I also told her that it doesn’t make any sense that they can add that much money onto it when the car had sold for what was left on the balance.
What can I do? I have 4 children and I can’t afford $75 every two weeks to come out of my paycheck. My hours vary from 28-36 hrs a week at 9.00/hr. I have been going to school so that I can try to get a better job but what is a temporary solution? Can they legally add on that much money?
Thank you!
Call an experienced debt collections defense and consumer rights attorney in your state. I can send you an email to some that offer a no cost initial consult. Post the state and a nearby larger city and I will send you what I have.
I bought a car in 2005. with payments wayyy too high I did a voluntary repossession in 2007. it sold in auction. and was left with 3000 to pay. I since haven’t worked . and currently still do not. when I look up my name on circuit court system it says it was originally filed on 9/22/2008 . I called back in 2013 to pay off debts and they had no recored of my name what so ever. so I figured I just this that amount of years where they stop going after you. well all of a sudden I keep getting someone coming to my door trying to “serve me papers” today he told my boyfriend “id hate to have her miss her court date” . so as of 9/22/2015 it’ll be 7 years. they refiled judgment on 5/12/2015 which is already in the 6 years just short of 7 years since them first filing. can they keep redoing a new judgment. can I send them something saying its with in WISCONSIN SOL? and I am no longer indebted to them ? is SOL for 6 years in Wisconsin or would this be considered a promissory note? and be 10? or is the promissory note null and void since the original contract is no longer valid since I did a voluntary repossession . and if I don’t get served the papers, am I still missing this court date this guy is speaking of? online it only shows this case as “filed only from May 2015. what does that mean? please help .
The Wisconsin SOL to sue legitimately in order to collect is 6 years.
You stopped paying on the car loan in 2007, and it sounds like they sued and got a judgment for the deficiency balance in 2008. They were well within the SOL if those timelines are accurate.
It sounds like the papers they are trying to serve you are for an asset hearing, or something similar. This is where you are in a court setting and under oath disclosing assets and income so that they can target how best to collect from you (or that you cannot pay anything at all right now).
The other SOL concerns that still apply will be the fact that judgments like yours can stay on your credit reports for 7 years from the date of entry. You need to know that the judgment not being on your credit report does not prevent them from collecting. They still have all legal enforcement to collect that judgment, and potential lenders will still be able to see that it is unresolved in the court.
Judgment debts are good for 20 years in Wisconsin. That means this could carry on until 2028. Wisconsin allows up to 12% interest to accrue on judgment debts. The amount owed is likely growing.
Can you come up with any strategy to raise enough money to settle for a lump sum of money, but for less than what is owed currently?
well that realllllly sucks. I will call my boyfriends bank and see if I can get my name taken off the account . . and see if I can come up with some amount of money its now I see they are asking over 5,000. the most I can give them is like 1500 at best.
because they could take all of his money right?
With your name and social attached to his account, that money could be at risk from a bank levy. If it were me I would get removed from the account until the judgment is resolved.
Getting a deficiency balance from a repossession that totals $5,000.00, and negotiating down to a pay off of $1,500.00, is something I see when there is no judgment. Getting that type of deal approved when there is a judgment is not all that common, though not impossible.
In 2008 I voluntarily surrendered a van that I could no longer afford after my husband and I separated. The loan was with GMAC and was in my name only. The car was sold at auction and a deficiency judgement was entered against me (and my ex husband, even though his name was not on the loan. We were married at the time). After that my financial situation got pretty bleak, although I was working. A couple attempts to garnish me were apparently unsuccessful. In 2010 I moved to Minnesota. In 2011 an apparently successful garnishment happened. I was under the impression that a garnishment could not happen across state lines unless the creditor got a judgement entered against me in MN. I had quit that original job, and have had several others since then, with no attempt to garnish. I found out that the SOL in AZ for that kind of debt is 5 years, and is renewable (they did re-enter the judgement in 2013 in AZ). I cannot see the court records here in MN because they are down for the weekend, but a preliminary search does not show anything against me in MN. My questions are: 1)How many times can they renew the judgement in AZ? 2) Can they pursue me across state lines without entering the judgement here in MN? 3) Can they attach/freeze my bank account if it is not in AZ (nor MN for that matter). Thank you for your time.
Does your current bank have branches in both Minnesota and Arizona?
No. It is a bank that does not have actual “branches”. It is based in another state entirely. What is interesting is that I do still have a bank account at a bank in AZ (that does not have branches in MN) and they have not tried to do anything with that account. Not that it ever has much money in it, but still!
Arizona judgments are good for 5 years and can be renewed for 5 years, and then another, etc.
Here is the plain language of Arizona statute on judgment renewals.
I a bit surprised they took the trouble to locate an out of state bank account to levy in the past. I would like some more details about that, but I would keep them off the site, so call in for a consult at 800-939-8357, choose option 2.You can also email the address you get these comment notifications from and set up a time to talk on the phone.
In the crash of 08, I was forced to close my business for failing to pay certain taxes. My wife & I filed BK7 in May of 09. Prior to losing the business, we gave Ford Motor Credit back a vehicle that was titled under the company. I never filed BK on the company itself. Now FMCC is sending a collection letter to the Company at my home address after 7 years for a deficiency, I’m guessing. Is that legal and am I personally responsible? The company has no assets. They also contacted me on my cell phone, the number I have only had a couple of years, asking if I had sold the company.
BTW, I live in New Mexico
There are a couple of ways to look at your situation.
First, the debt did not go away if it was never part of the bankruptcy. It should have been listed with the court, but was overlooked. The debt collector thinks they have a legitimate debt to collect on, and just because your state SOL to file a legitimate collection suit on the deficiency balance is passed, or that the debt may not be able to stay on your credit reports due to age, it does not mean collection attempts are illegal.
You may be inclined to look into whether there is a TCPA violation for the calls to your cell, but it appears this is a business debt only, and that may mean consumer protection laws would not apply in the normal course.
I would encourage you to speak with an experienced TCPA and/or FDCPA consumer law attorney in New Mexico and find out what your rights are in this situation. I can email you contact info I have on file for anyone in your state if you like?
FMCC was listed as a creditor in the BK. Please email contact info you said you have. Thanks
I misunderstood originally. I thought they were overlooked and not listed in the bankruptcy. Now it is even more important to talk things over with an experienced debt collection violation attorney in NM.
I sent you an email with contact details to 3. The last one is a new one I just learned of before this email. She was a former assistant attorney general in your state. I might call her first.
I negotiated a payment plan with the bank for the difficiency on the car I surrendered.
What do the bank report with credit bureaus?
Before I reply, I want to confirm that you agreed to make monthly payments, and if so, for how long?
My name is Phillip. My daughter purchased a used vehicle in Ga. 2 years ago car sold as is, the next day she took the car back transmission problems. No results with dealer. Made 2 payments then quit paying transmission went out. Repoed 30 days later. The sale price at purchase was 3.500 with 500 paid down. The dealer turned the debt too a collection agency thru garnishment she lacks one month paying the balance off. Question is, how can you have your cake and eat it at the same time.
It sounds like the auto dealer could be in violation of some lemon laws,or other consumer protection laws. I would file an accurate and thorough account of all that happened with your state AG, and also a debt collection complaint with the CFPB.
Post an update with how she progresses.
The letter is from the finance company. My uncle is planning to file for bankruptcy. Will that put both of us off the hook?
After your uncle files bankruptcy he is free of the debt, but as a cosigner, you are still on the hook for the full balance.
I live in NYC and I have cosigned a car (from carmax) for my uncle who lives in Georgia in 2010. The car has been reposed and sold and I just received a deficiency balance of $4945.61 letter, but my uncle has not received such a notice. He does not want to pay it. What do you advice? Can this amount be reduced to a $1000 if pay in lump sum?
The amount can be negotiated lower, but 20 percent may not be realistic. Can you pull together more money?
Is the letter about the deficiency balance from the finance company, or a debt collector?
I had 2 cars in NY and moved to Pa while moving to p.a. I got both car insuranced with pa insurance so I could register them. Registered one car but before I could get the second car done it was stolen. Now the insurance company denied the claim because it never made it to the state it was insured. So this just happened can they freeze my accounts and garish paychecks if I don’t pay off the car? What do I do? Is there a time frame that the financial company can seek payment if I stop paying for the car?
Are you in western or eastern PA? I want you to contact an experienced consumer law attorney for a no cost consult about your situation. I will email you contact details for the one you are closest to.
No, they cannot just garnish and levy. Not without suing you first and getting a judgment in court. Even then PA does not allow for wage garnishment for a debt like this.
Norristown, PA
I sent you the email with Jason’s contact points. Let me know how you progress.
I have a some what simular situation as to others ……. I had a Montero Sport in college and my Father co- signed on the vehicle for me . The engine failed on the SUV and I could not afford to keep up payments and get the Engine repaired at the dealer . This happened in 2007 I believe . The Court documents were sent to my grandmothers home in another city while Iwas still off to College . Since then my Father has passed and it’s still on my credit. I also voluntarily surrendered the vehicle when I couldnt afford repairs . Why didnt this go away when my father passed ? And how can I get rid of this I want to buy a home .
Most cosigners enter into the loan with shared liability, where if one person cannot or will not pay, the co borrower is on the hook. These loans will generally show on each cosigners credit reports.
Whose name(s) is the judgment against; yours alone; your fathers alone; or against both of you?
What is the date of the judgment?
What month in 2007 was the last payment made on the account?
What is the balance owed on the debt?
How prepared are you to settle the repossession/judgment for less than the balance in order to get a mortgage approved?
In the state of Utah, when trying to figure out when does the day of last activity starts on a repossessed car? is it the date when I made a last payment and the account became delinquent or when car was repossessed or when the car got sold??? My car was repossessed on April 09′ but I stop making payments about 5 months before it got repossessed, can I still be sued? I recived a phone call from the collection agency and they told me they legally had 8 years to sue me!!! Please help!!!
The SOL for a written contract in Utah is 6 years. That time frame generally starts when you missed that first payment. You would appear to be passed the 6 year statute already.
A debt collector telling you they have 8 years to file a legitimate lawsuit in Utah is false and misleading. I would want to run this by an experience collections violation attorney to see if they would suggest pursuing an FDCPA case on your behalf, and where you would not have an out of pocket expense. You can connect with one at 800-939-8357, choose option 5.
Over 10 years ago we returned a vehicle and stopped paying on it since then we never got any letters about a court date to pay remaining balance. Out of the blue we received a letter saying they were going to levy my bank account until payment was paid
Can they levy my account for unpaid car loan?
What is the name of the debt collector the sent you that letter? Did the letter refer to the court where there is a judgment against you?
The levy on your bank account requires a court judgment. And it is possible, unfortunately, to have been sued for the deficiency balance on the repossession and not known about it. This can sometimes be unwound.
What state are you in?
Hello, to answer your questions- no, the loan was never refinanced after my son turned 18 years old. The lender of the vehicle was Ford Motor Credit. The last payment made on the car was about 5 years ago. The original lender, Ford Motor Credit is who sued. The attorney firm who was hired by Ford Motor Credit is Sklar -Markind, Attorneys, and they are located in Cherry Hill, NJ. No, I do not own any property or real estate. This whole situation has me incredibly stressed, And I dont know when I will ever be in a stable financial situation to be able to start paying back this debt. My hours on my job vary greatly every week, and I am desperately trying to find something stable. As far as the back account with my boyfriend, I was under the impression that joint accounts could not be touched – how can they take money away from someone who has nothing to do with this situation? How can they prove whose money is whose? I cannot tell you how devastating this would be to both of us if this joint account were to be levied-we would be completely ruined. I want to pay back this debt, but for the right here and now I want to protect what little money I do have so that my children and I can survive. What can I do to have this levy removed from my bank account? If PA has an allowance of 300.00 that cannot be touched, and that is what I have in the account, dont they have to remove the levy? Are there any laws stating how long they have to remove it after the letter of interrogatories is received ? Its been over two weeks now and i am getting desperate. Will every bank account I ever open eventually be levied like this? Is there any hope of trying to get this resolved so that i can move on with my life? Thank you so much for any assistance you can give me.
Keri – When it comes to joint accounts, you and I would use common sense and think that a debt collector cannot levy and harm someone not party to the collection. The problem here is that collectors don’t care about that. They care about getting paid. Filing a levy and getting money from an account that has your name on it gets them paid. Can you get money that is not yours that was taken returned to your boyfriend? Yes, but it is a process. When this happens, it is unfortunately going wind up being YOU who gets to prove whose money is whose. I am sure you want to avoid this when possible. The best way to do that would be for you to remove yourself from the account. Continue to get paper checks from work and endorse them over for deposit, or cash them and pay bills with money orders etc., until you resolve the collection judgment.
I cannot comment as to when the current levy gets removed and the 300 released back to you, or when/if the account would no longer be flagged anytime the balance exceeds the 300. It is a process that takes time, and will differ based different variables.
Yes, you should assume that any bank account with your name on it will be at risk of a levy until:
The collection is resolved.
The account contains only exempt funds such as received from social security, disability, or other exempt funds. Even then you have to be sure no other source of funds are deposited.
You should develop a plan to pay this collection off. You can settle it for less than the balance, but you need to have the financial resources for that. Let’s assume for a moment that you could settle the debt for half of the 8k. Can you come up with the 4k, and how long will that take? It does not have to be overnight. You could accumulate it over time while living and paying bills on a cash basis until you settle.