Auto Repo, judgement ?'s.....

ILLINOIS - STATE OF RESIDENCE

My husband and I are in the process of calling our auto finance co and voluntarily having them repo our van. We bought a new house 2 yrs. ago. After that, I had to quit my job due to an unplanned/difficult pregnancy. Since then, we have been struggling to make ends meet. We have 4 children and just cant juggle 2 new car payments and a steep motgage payment any longer. Its killing us. We are very aware that our credit will go downhill with this! However, its going that route with not making enough to cover bills now.

I know that Illinois has a deficiency judgement clause. However, if we continue to make SOME sort of payment after our van is sold at an auction...will they still sue us? If so, can they touch our home? (Leins) And can they require us to make the FULL van payment until it is paid off in full??

We have no problem paying SOMETHING on this loan, even after it is sold. But, we are worried about what they will demand.

Thanks!
Sherry

[Ladynred]

However, if we continue to make SOME sort of payment after our van is sold at an auction...will they still sue us? If so, can they touch our home? (Leins) And can they require us to make the FULL van payment until it is paid off in full??

Yes, yes, and yes.

They will likely not accept anything but full payment for the deficiency once the van is sold. If they will accept payments, its not going to be $25/month. They can sue you and if they get a judgment they could place a lien on your home.

Although, its not the info I wanted to hear...thanks for your time! Do you know if they usually request garnishment for a certain percentage..or for the full payment? (Or I guess that would just depend on what percentage to the payment?!) What is the max percentage garnishment in Illinois??

Furthermore, would the courts take into consideration your children, assets, wages, etc, etc,...?

[Ladynred]

The court doesn't take anything into consideration unless you appeal the garnishment - which you can do if its causing you hardship.

They would garnish for the full amount awarded to them in the judgment - plus court costs, attorney's fees and interest on the judgment itself

IL garnishment is:

15% of gross wages or disposable earnings for workweek up to 45 x fed. min. hourly wage, whichever is greater.