Legal Question in Credit and Debt Law in Virginia

Re: Repossession of my Automobile

Step one is, "read the contract".

Often, the contract is written in such a way that the debtor can end up owing more after repossession than before. That's because the creditor can incur costs and expenses for which the debtor is liable in acquiring, storing, and selling the car, which exceed the value of the car (which is then sold to a wholesaler owned by the creditor at an extremely favorable price).

There is usually no obligation to sell the vehicle in a way that would benefit the debtor at all. I'd say you've probably been tooken, and quite legally, too, because you signed the contract (1) without reading it, and (2) without being sure you understood what it meant.

So, step two is, "consult an attorney". Bring in the contract, and discuss the facts. It may be that the creditor violated some rule of the Virginia Consumer Protection Act, the Virginia Home Solicitation Sales Act, or the Federal Fair Debt Collection Practices Act.

Re: Repossession of my Automobile

The fact of the repo does not affect your liability for the loan. It just reduces the balance due by the amount the car was sold for (less the costs of repo and sale). In fact, while the loan was not due in full prior to the repo, the payments are now accelerated and the whole thing is due. You now need either to work out a payment plan to pay this off or to consult a bankruptcy lawyer.