Legal Question in Credit and Debt Law in Indiana

Re: Court Order for Repo Balance

When cars are re-possessed, they are almost always sold by the creditor at auction. The auction price goes toward the costs of re-possession and sale, and then to the balance owed on the car loan. If the car sale is not enough to pay the expenses plus the loan, the remainder is the deficiency balance.

The deficiency balance is an unsecured debt, just a like a bill owed to a doctor or a credit card bill. The holder of the debt can sue the debtor, get a judgment, file liens on property, garnish wages, etc., all to the extent allowed by applicable state law.

To determine whether the deficiency balance is worth filing bankruptcy over, you must look at your entire financial situation -- ALL debts, ALL assets, income, expenses, etc. If you think you may need to file bankruptcy, seek a free consultation from an experienced bankruptcy lawyer.