Car repo

Dec 05, 2011

Car repo
by: Debtcollectionanswers.com

When a vehicle is repossessed, the lender typically sells or auctions off the vehicle and then applies the sales proceeds to the balance due on the loan. That balance is referred to as a deficiency. I assume that this is the $6,000 you are refer to in your question.

if your boyfriend does not pay the deficiency amount, the lender will sue the him for the money, and if it wins the lawsuit, the lender will try to collect the amount of the judgment. In order to do so therefore the lender may ask the court for permission to garnish his wages. Assuming the lender gets that permission, there is a state-established limit however on how much can be taken from each of his paychecks.

One option for stopping a garnishment is to file for bankruptcy. If your boyfriend were to file, all collection efforts against him would have to cease immediately and your boyfriend would have an opportunity to work with his bankruptcy attorney to figure out what to do about the debts that he owes. (If garnishment has already begun, filing for bankruptcy would stop it from continuing.)

Bankruptcy may or may not be a good option for your boyfriend however. Only a bankruptcy attorney can make that determination after looking at the all of the details of your boyfriend's financial situation. Your boyfriend should go here to schedule a free consultation with a bankruptcy attorney.

Car repo

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Car repo