I’m In Deepo With A Repo

I recently saw on a county web site that a past creditor had filed suit for a automobile owed while going thru bitter divorce uable to pay, attempted to contact attorney handling case attorney stated that they will only accept a lump sum payment, that want $35,000 for a car that 8 years old that say that they will not take payment, I can file bankruptcy but would like to purchase a house in jun 07, i don’t want this to come into play what should i do?

Roger

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Hello Roger,

Has this gone to trial?  If so, and this is a deficiency judgment, then you may be able to vacate the judgment.  If not, and your trial date is set, then you may have a basis for challenging the amount.  State law and the Uniform Commercial Code may provide defenses against the deficiency.  There are rules of repo the creditor is required to follow. 

For one, the creditor is generally prohibited from committing a “breach of the peace” when seizing the vehicle.  If there was a “breach of peace” in seizing the automobile, the creditor may lose it’s right to a deficiency judgment.

independentdealer.com states: “Many states’ statutes, as well as UCC 9-503, authorize repossession of a vehicle without judicial process if it can be done without “breach of the peace.”  Breach of the peace essentially means that during the actual attempt to repossess the vehicle the repossessor may not employ oppressive conduct, threat of force, an implied threat of force or engage in a confrontation to gain possession of the collateral”. 

You need to learn what the repo laws are for your state.  Was the creditor required to notify you in a certain way or wait a period of time before auctioning or give you an opportunity to redeem the car, etc?

Roger, this is a serious matter and you should seek some qualified help.  Naca.net has some great consumer lawyers.

Thanks for the questions.

Paul

P.S. An eight-year old car and a $35,000 balance.  What was that, a Lamborghini?

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.