Legal Question in Credit and Debt Law in Pennsylvania

Re: car reposession

You asked if a repossession will prevent you from getting another car loan.

First and foremost isn't that why you got into trouble in the first place?

No, repossession will not prevent you from getting another car loan, but you still do not want to let it happen. If a car is repossessed it is sold at auction for the best price offered. Often this is less than the amount due on the loan. The difference between the sale price at auction, the amount due on the loan and the finance companies costs in repossessing the vehicle is called the deficiency. This is often considerable and remains your obligation when a vehicle is repossessed involuntarily. You can help yourself out by either selling the vehicle outright and paying off the loan, or voluntarily surrendering th car. An attorney can help you negotiate this.

No matter what, you ability to get a future loan will be based on your ability to repay the loan given your resources at the time.

Go to a debt counselor or have someone help you set up a budget and learn to live by a budget.

Regards,

Roger Traversa

email: [email protected]