Legal Question in Credit and Debt Law in Pennsylvania

Re: reposession of a car

The company that repossessed the car is usually entitled to the difference between the sale price when they sell it after repossession and the amount still owed under the loan contract. They can file an action against you for that amount. There are defenses to an action like that, for example where the sale is not commercially reasonable or where the vehicle is sold to an insider for less than fair market value. For many people such a repossession is the final straw driving them to file bankruptcy. You should contact an attorney in your area to learn your best options.

Re: reposession of a car

Repossession is the creditor�s first step toward recovering the money they are out due to the defaulted loan. They must give you notice of their intention to sell the car and give you the right to buy it for the balance of the loan. Once that occurs, they are free to sell it, usually at an auction.

The difference between what you owed and what they received is called the deficiency. They are free to collect that debt in the same manner as any other creditor. Thus, they can call you, write you and sue you for that debt.

I trust this has been helpful but feel free to call or E-mail on a free initial basis.