private or public auction for auto reposession

by TG
(Mesa, Arizona )

My husband turned a car back over to the finance company in arizona .. I have heard if it was sold at a private auction that he would not owe on the vehicle.. but if it was sold at a public auction that he would still owe on it.... Is this correct, and if so, where does he find the statutes explaining this?

Reply from DebtCollectionAnswers.com:

You can find information about the Arizona Uniform Consumer Code here:

http://www.azleg.state.az.us/ArizonaRevisedStatutes.asp?Title=47

Our understanding is that you may be held responsible for a deficiency if the vehicle is sold for less than the total amount you owe, regardless of whether it is a public or private sale, but we are not attorneys so we can't confirm that or give legal advice.

Typically, the difference betwen a public and private auction is the amount of money the seller will get for the car. Obviously, the more they sell it for, the less you will owe in terms of a deficiency.

Our recommendation is that you set up a a free consultation with a bankruptcy attorney to find out whether you can be held responsible for a deficiency, and if so, what your options are. This is the kind of thing that bankruptcy attorneys deal with all the time, and should be able to explain to you.