Can you be sued for the deficiency balance on a vehicle repossession?
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Can you be sued for the deficiency balance on a vehicle repossession?
Asked on April 29, 2012 under Bankruptcy Law, Montana
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 11 years ago | Contributor
Yes, you could be sued. The lender's right to repossess your car is one of the ways it may secure payment of your debt--however, the critical point is that the lender is entitled to payment of the whole debt, and is not obligated to take the car as payment in full. If the car, when repossessed, is worth less than then the then-outstanding balance of the loan, the lender could sue you to try to recover the unpaid amount, or deficiency.
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