Can Other Car Be Taken To Satisfy a Deficiency

Sep 21, 2011

Can Other Car Be Taken To Satisfy a Deficiency
by: Debtcollectionanswers.com.

A deficiency that results from the repossession of a vehicle is an unsecured debt. Therefore, if you do not pay the deficiency, the bank must sue you for the money you owe and if it wins the lawsuit it can collect on the judgment against you. It might do that by garnishing your wages, taking money from your bank account or it might put a lien on an asset that you own -- like your other car. If the bank puts a lien on that car, you will not be able to sell or transfer it to someone else without first paying the amount of the lien. It's likely that the bank will try to collect on the judgment using garnishment or by taking money from your account rather than through a lien because the other two methods will generally be the fastest ways to get the money its owed.

Have you talked with your bank about paying the deficiency amount over time, assuming that is something you might be able to afford? Another option might be to settle the debt, which involves getting the bank to agree to let you pay the debt in full for less than the deficiency amount. You will probably have to pay that amount in a lump sum however. If the bank agrees to a payment plan or a settlement, do not pay it any money until you have the terms of your agreement in writing.

Can Other Car Be Taken To Satisfy a Deficiency

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Can Other Car Be Taken To Satisfy a Deficiency