Repossession of car

[alannah974]

What is the name of your state? Indiana

please help..i have fallen on hard times and my car has been repossessed and will be sold at auction am i responsible for the loan still?? i have been told there may be a way that i dont have to pay the bank .. i am positive that the amount they will sell the car for is less than the remaining balance on the loan.. if i am will this affect any other vehicle i purchase in the future other than on my credit

 

[Chien]

You can be held responsible for the “deficiency balance”. If the secured creditor sues, that is the balance of the loan (principal and interest), the repossession costs, the costs of repairing any significant damage to make it ready for sale and, in all probability, the costs and attorneys’ fees associated with suit. Against that balance, you will receive a credit for the price paid for the car at auction, but the difference can still be a significant number.

Do you have any ability to refinance the car with the lender and have you tried?

As far as any future vehicle is concerned, a judgment, if taken, will increase the costs of any credit that needs to be extended – i.e. a new loan. Another car may also be an asset subject to seizure and sale to satisfy an existing judgment. The costs of doing that make it unlikely, but it is not impossible.