I have received a notice that a legal judgement for what is owed over the sale of my auto will be filed as soon as it is sold, Once I receive the notice what steps do I take then? Do I go to court in answer to the judgement?
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They are going to try and hold you liable for the deficiency balance (the difference between the current value of the car and amount you owe). If they sue you, you have basically 5 options
1. Do nothing and let them take a judgment against you (not a good idea).
2. Defend the lawsuit by argueing that they sold the car for too little and try to get the overall amount you owe reduced.
3. See if there are any lending violations, and sue them accordingly, i.e Truth in Lending, etc.
4. Contact them and see if you can reach a negotiated settlment.
5. File bankruptcy and list them as a creditor. -
If I just wait and let them take a judgement against me what happens then? I don't have very much paid on my house and I don't own another vehicle.Comment
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If they get a judgment against, they can then garnish your wages, and place a lien against your house and personal property, and depending on the state you live in, they might be able to force a sale of the house to satisfy the judgment.
You DO NOT want to let them get a judgment, your options become suddenly narrow (i.e. all you can do is file a BK at that point).Comment
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