reposession deficiency judgement

What is the name of your state? Live in Massachusetts, vehicle purchsed in Rhode Island.

Can someone please advise which states creditors are allowed to file a defiency on a balance (after vehicle resale) on a repossessed vehicle?

Also, which state is the deficiency filed in - the state the vehicle was purchsed, or the state where I live?

What are the implications if a judgement is reached on a deficiency? Does it just affect my credit for 7 years, or is there a possibility of liens on other assets or wages garnished? How likely is it that a collection agency would go this far for a 5k deficiency?

I would greatly appreciate anybody's help on this!

Thanks

[Ladynred]

Can someone please advise which states creditors are allowed to file a defiency on a balance (after vehicle resale) on a repossessed vehicle?


** ALL of them ! If your car is repo'd, they sell it auction, and YOU are stuck with the shortfall PLUS all the repo and auction fees. And they don't 'file' a deficiency - they file a lawsuit FOR the deficiency amount.

Also, which state is the deficiency filed in - the state the vehicle was purchsed, or the state where I live?

**Again, they don't 'file' a deficiency. The deficiency comes about as stated above. Once that happens, they can pursue whatever collection remedies are available by law. That means they can sic collection agencies on you and they can sue you. If you're sued, generally its where you live.

What are the implications if a judgement is reached on a deficiency?

*** Same as any other judgment. They can go for siezure of non-exempt assets, liens on property and wage garnishment.

Does it just affect my credit for 7 years

**Yes, it goes on your credit for 7 years.. and possibly more. The FCRA states that judgments CAN stay on your report as long as the judgment goes unpaid.

How likely is it that a collection agency would go this far for a 5k deficiency?

** Depends. More likely than if it were under $1000. If they see you have assets and a job, its more likely to happen.

[JETX]

Ladynred, good post. Thanks!