Legal Question in Credit and Debt Law in North Carolina

Seriously? The legal recourse is that the lender repo's the car. Then the lender takes to an auto auction and sells the car for nowhere near what it is worth. The the lender comes after you for the deficiency, which is what was left owing on the car plus repo and sale costs minus the proceeds from the sale. So you are now faced with the choice of having to pay for a car you no longer own. If you do not pay or resolve, the lender can then sue you. They have 3 to 4 years to do this. If the lender recovers a judgment against you they can then try to collect by levying on your bank account or seizing other assets you may own. Judgments never ever go away. They are good for enforcement purposes for 10 years and they can be renewed for an additional 10 years (so 20 years maximum).

Since you still have your car - I would seriously think about alternatives other than the above. Can you sell your car for at least as much as owed? That would be a better option than repo. Or do you have a friend or family member who can take over payments? Some paperwork needs to be done there but that will also be better than the above. Failing that, can you file bankruptcy and get the loan terms modified?

Repossession is not a good option but it depends on your situation, your other debts and assets. Once the car is taken and sold any deficiency becomes like any other unsecured debt in that it is negotiable and you may not have to pay the full amount. But if this is your ultimate game plan you need to start saving the money for that.

If you are interested in bankruptcy then many bankruptcy attorneys give free consults. It does not mean you have to file. But it would be good for you to get the free consult and learn about what bankruptcy can or cannot do.

If you are interested in dealing with the debt in a non-bankruptcy non-litigation context, please email me at [email protected].