Legal Question in Credit and Debt Law in Michigan
Voluntary repossession question
Due to illness and job loss, I voluntarily took my truck back to Ford. I explained to them that I could not pay for it due to illness and job loss. Now, I have received a Summons to Court as I am being sued for a HUGE amount of money. Ford sold the truck and recovered half of the amount of the original contract and now they are coming after me for the remaining half. What can I do? Paying this debt would be impossible as my wife also is undergoing cancer treatments. Please advise.
1 Answer from Attorneys
Re: Voluntary repossession question
Occasionally you can find defects in the actual sale of the collateral and the Court will force them to eat the difference. Such actions provoking such a response include unreasonable delay in selling or failure to provide notice of the sale, etc. These issues can be litigated through a Chapter 13 bankruptcy. The creditor is claiming the deficiency balance. Your best bet is to settle with them if you can afford to, with an agreement to make payments. If that is impossible, perhaps Chapter 13 or Chapter 7 bankruptcy is your next option. There are pros and cons to this - feel free to contact me - 248.569.1900.