What to do if I’m being sued for the remaining balance on a vehicle that was repossessed?

I ended up losing my job and couldn’t make the payments. Then I found another job making significantly less money. They were about to repossess the vehicle but I filed for chapter 13 bankruptcy to avoid that. I lumped all my past debts into it. The payments ended up being the exact same amount as the payments originally was. I felt like I was in the same boat and couldn’t keep up. They ended up dismissing my case due to nonpayment. So they ended up repossessing the vehicle and selling it through an auction. Now I have been served for the remaining balance. I have to reply to the courts in about a week and a half. What are my options as far as a defense?

Asked on November 12, 2012 under Bankruptcy Law, North Carolina


eric redman / Redman Ludwig, P.C.

Answered 8 years ago | Contributor

they will get the judgment for the deficiency since you do owe the money.  you would need to work out a payment plan with the creditor attorney or file a chapter 7 bankruptcy to eliminate this debt and others.

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