Am I right about what this means?

[ndbigler]

Can someone tell me in plain english what this means?

"We have your 2002 Ponticac Sunfire ... because you broke promises in our agreement. We will sell the Collateral at private sale sometime after August 22, 2005. A sale could include a lease or license. The money we get from the sale (after paying our costs) will reduce the amount you owe. If we get less money than you owe, you will not owe us the difference. If we get more money than you owe, you will get the extra money, unless we must pay it to someone else."

What I'm getting is that they're going to auction off the car, and they won't sue us for the difference, or ask for any more money from us. Is that right?

[Whittio]

Wow, that's a really weird written letter. Sounds so confusing.

Basically to me I understand it to mean they will take what they get at auction. If it's less then you owe, they eat the difference, if it's MORE then you owe, they will send you the difference.

So if you only owe $500, and they sell it for $800, they'll send you the extra $300 (unless they have to send it to someone else per their letter).

Still, it's a very unprofessional letter. Sounds like my 12 year old wrote it.. LOL

[edwards2]

So the repossessed your car? Usually they sue you for the difference in what you owe versus what they sell the car for. Did you file BK? I think it is very unprofessionally written too. Also I dont understand the part about possibly giving the money to someone else?

[ndbigler]

I know, thats what I thought. The letter came from the bank we were financing the car thru. Wells Fargo Financial. Yes we filed ch 7 bk on 5/31 and had our 341 on 7/5. Yeah we couldn't afford the car, so we surrendured it. We owe 13K. I know for a fact they won't sell it for that.

[Whittio]

That was written from Wells Fargo! Holy smokes. I would have thought some "ma & pa" type place, but NOT Wells Fargo!

I think the part about giving it to someone else, might mean that if the BK ordered any "unused portion" to go towards other debt?? I am just thinking off the top of my head here. I don't think you have anything to worry about either way though.

Sheesh, I just read it again, and it made my head spin.. LOL

[ndbigler]

I know, you guys have got me all freaked out that this letter was written by a fraud! LOL
It LOOKS legal...
No, I'm sure its fine.

[Minnymouth]

Since this thread is under Chapter 7 I'm assuming you filed a 7!!
If you surrendered your car under Chapter 7 it is not considered "repo".... You will not be responsible for the balance due (nor the difference of what it sells for and your balance).
If the car was a repo BEFORE BK and not included, then you could be responsible for the difference of what it sells for and what you owed - unless your lawyer files to included in BK.
IF THEY SHOULD TRY TO BILL YOU!!!! Send them a certified letter stating - " when you sell my vehicle - I need a "copy" of the "bill of sale" proving what you sold it for (plus THEIR COST INVOLVED) and a "copy of my account" showing the outstanding balance.
VERY SELDOM WILL YOU HEAR FROM THEM.......when you ask for this info!!!! You are entitled to "know" what they sell it for - if you pay the difference....make them PROVE IT!
But more than likely BK will wipe out this debt also....

Money back???? Same principle with selling home - if the house sells more than the debt on it, owner gets difference, unless Trustee wants it to apply to other debts!
More than likely in this case with the car - the Trustee would get the extra cash.....

Hope this helps!!!

Minny

[ndbigler]

Thanks, Minny it does. And yes, *ahem* we did file chapter 7. Haha