Hi, We had a vehicle repossessed after 8 months of having it. The total cost was about $13,000. After it was repossessed, they sold it for dirt cheap and we now have a judgement against us for $8,000. I understand that we broke the lease, but $8,000 for a vehicle you don't even own, only had for 8 months, and sold to someone else dirt cheap? We're supposed to pay more than the "buyer" of the vehicle for a car we had for very little time. It is even legal to make someone pay so much for something they don't have? Thanks
Re: Credit Judgement. Vehicle Repossessed after 8 months, owe $8,000. Payment was $23 Sorry to hear about your situation. I think they have to be able to prove that the sale was for a "commercially reasonable" price, but who knows what that really means. They can usually get a way with selling it really cheap. If you think the price wasn't justifiable given your location, comparables, etc., then you might have grounds to contest the deficiency judgment.
Re: Credit Judgement. Vehicle Repossessed after 8 months, owe $8,000. Payment was $23 If this was a lease, then I assume this is (was) a new car we are talking about. Even assuming default and repo fees of $1000, I am incredulous that a car which originally sold for $13k could only fetch $6k at auction. Unless of course the lender is the dealer's own "in-house" finance company which bought back the car for a low price at a sham "auction". In any case, the time to dispute the alleged deficiency balance was before the creditor received the judgement--not now. At the time when you were sued, you could have attempted to answer the complaint with a defense that the amount claimed is capriciously high due to an unreasonably low "sale" price, and that the plaintiff has a legal obligation to minimize its losses--not to try and maximize them and stick you for the balance. Now that the creditor already has a judgement, you legally owe the money. The only thing that will change that fact is if you pay off the judgement (not likely considering that you couldn't afford the monthly payment) or that you file for bankruptcy protection. In the mean time, you need to worry about protecting your money from this creditor. If you are working, then assuming that the creditor can locate your employer, your wages will probably be garnished. Also, judgement creditors often seek to levy bank accounts, and there will be NO ADVANCE WARNING that this is going to happen. If you keep money in the bank that is needed to pay for your rent/mortgage, food, medicine, etc, you may find that money gone in the blink of an eye. Therefore, until this judgement is either paid off or discharged in bankruptcy, you should close all bank accounts, or keep less than your state's nonbankruptcy exemption in them. For everything else, cash your paycheck, keep cash in your home and purchase money orders to pay the bills.
