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.
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.