If the bank takes my car, can they go after me for the difference between what they could get and what I still owed?
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If the bank takes my car, can they go after me for the difference between what they could get and what I still owed?
I cant afford my car note anymore and want out of it. I told the bank to come get the car and now they are saying that if they come get it and sell it, that I will be responsible for the difference in balence of what I still owe and what they could sell it for.
Asked on May 14, 2012 under Bankruptcy Law, Texas
Answers:
michael cramer / The Cramer Law Offices
Answered 11 years ago | Contributor
Yes, unfortunately the lender is able to sell the car and still sue you for the balance. This is called the deficiency balance. Many times, a lender will work out an agreement with you if you are willing to voluntarily return the vehicle without forcing them to repo it. If they agree, you will want to get a written agreement that releases you from any remaining liability on the car note, once you return it to them. You will also want them to agree to correct your credit status and delete as much of the negative notes as possible. If they will not agree, you must then decide whether it makes sense to return it now, or continue to use the vehicle until they repossess it.
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