Legal Question in Civil Litigation in Mississippi
Automobile Voluntary Reposession
I voluntarily surrendered a van on July, 1996. On Dec. 29, 1997 I received a letter from a debt collectors office saying that I owe them $6220. On Dec. 31, 1997, I got a phone call from someone at this office. She told me I needed to give her my checking account number so she could take out the money. I told her no, that I do not have the money. She says she will garnish my husbands pay. Can she do this? My husband is in the military, and I do not want anything to happen to his future. When we gave the van back we were told that all they could do was put any unpaid balance on our credit report. Is that true? Do we have to pay the balance? Will this hurt my husbands military future? We are very confused and need some advice. I would also like to know how this woman can call and give us one hour to make a $6000 decision.
1 Answer from Attorneys
Collection of deficiency following repossession
This BBS reply does not constitute the giving of legal advice nor does it, or is it intended to, lead to the establishment of an attorney-client relationship.
The collection of amounts due on a repossessed vehicle is governed by the Uniform Commercial Code as it has been adopted by your particular state. You should obtain legal advice about how your state has enacted the UCC. Basically, once a car (van) has been repossessed, the creditor must give you notice either of the date after which it will be sold privately or the date on which it will be sold publicly. Failure to give the debtor the required notice of sale MAY prevent the creditor from collecting the deficiency, that is, the difference between what was owed on the vehicle and what it brought at sale. Once the amount of the deficiency has been established, the creditor can file a civil suit to collect it. Only after the creditor has obtained judgment in the civil suit can it then try to enforce or collect the judgment through any of the means available to it under state law, including garnishment.
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