Legal Question in Credit and Debt Law in Tennessee
Balance on a repossesed automobile
I had an automobile repossesed 2 yrs. ago. At that time the balance was 4624.83. At the present I have been served a civil warrant to appear in court by the tote the note carlot. They say that the car has been auctioned and that I still owe them 4624.83 plus an additional 1145.00 for attorneys fees, but no attorney has been hired. Can all this be true? Please help.....
2 Answers from Attorneys
Re: Balance on a repossesed automobile
The balance between the amount owed and
the resale amount is what is termed the
deficiency. It appears that you are being
sued for the amount owed without there
ever having been a resale of the car.
You should find out the amount of the
resale. If the car has not been sold,
then it would appear as though the
finance company may have serious
problems in explaining to the court
why you are being sued for the amount
owed with the finance company retaining
possession of the car also.
Re: Balance on a repossesed automobile
Generally a creditor has the right to seek any deficiency resulting from the sale of property securing a debt. Usually, the amount of the deficiency will be less than the initial amount owed, but with the addition of interest on the debt, your obligation can increase rapidly. If it is true that no attorney has been hired, however, it is improper to assert any liability on your part for attorney's fees.
If you have any further questions, please do not hesitate to contact me.