Legal Question in Bankruptcy in Wisconsin

Bankruptcy Discharge of Deficiency Judgment Following Repossession of Vehicle

Since repossessed autos are nearly always resold at wholesale auto dealer's auctions, the amount realized at the sale is rarely enough to cover the entire loan. In fact, frequently it is not even half of the balance. The lender therefore often sues and tries to collect for the leftover amount. If there was no intentional damage to the vehicle, the deficiency judgment is generally dischargeable in a bankruptcy. It is an unsecured debt, but any judgment serves as a lien against real estate owned by the borrower in any county where the judgement is docketted. Additionally, such claims can form the basis for a wage garnishment. If you are on the receiving end of one of these, you definitely need to discuss your situation with an experienced bankruptcy lawyer ASAP. I am not permitted to give legal advice in this online forum and nothing which I am saying here is intended to create an attorney client relationship.