Legal Question in Credit and Debt Law in Missouri

My family has recently moved to Missouri from the California state. We have a travel trailer that we can not afford anymore. The income in Missouri is quite a bit less than in California where we moved from.

My question is does it matter if we surrender the trailer or let it get repo'd? I was told that if it was repo'd or surrendered it would be sold at auction and we would be responsible for the difference amount. Is that true? I have also been told that some states have consumer protection that helps consumers not get stuck with the difference when sold at an auction. I am unable to find out if Missouri is one of those states.

Any guidance would be greatly appreciated.


Asked on 8/27/12, 12:18 pm

1 Answer from Attorneys
Michael R. Nack Michael R. Nack, Attorney at Law

Normally, the terms of your contract control. Under most such contracts, and under the Missouri law, the debtor (borrower) will be responsible for the deficiency balance after a post-repossession sale, assuming the repo and sale are done properly. You might be able to negotiate a settlement with the creditor (lender) under which they agree to cancel the remaining balance if you return the trailer, or you might consider selling the trailer outright for at least the total amount owed.

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Answered on 8/27/12, 6:34 pm


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