My car was repoed today. I had just made a payment online. Owe $1600 + fees. They want all now. What can I do if I do not have enough money?
Thank you for visiting Bills.com, I am sorry to hear about your vehicle being repossessed. Unfortunately, as the asset in their hands now, you will find that most creditors will be unwilling to give the car back to you even if you have made the overdue payments. If you cannot make the payment that they are demanding right now, the lender will usually sell the vehicle at an auction, then apply the money received at auction to the balance owed on your auto loan. If the lender receives less money at the auction than you still owe on the vehicle, the difference is called a deficiency balance.
Generally speaking, you would be liable to the creditor for the deficiency balance, which means you will probably still owe money to the creditor even though you no longer have the vehicle. The creditor may be willing to negotiate a repayment plan or lump-sum settlement with you to repay the deficiency, but if you fail to make arrangements with the creditor, the creditor could sue you to obtain a judgment against you, which could result in wage garnishment, a lien on your property, and/or bank levies, depending on the laws in your state.
Before taking any action regarding this vehicle, I encourage you to consult with a qualified attorney in your area to discuss your state laws relating to automobile deficiency balances (the amount owed after the repossessed vehicle is sold at auction). Laws vary from state to state regarding how finance companies may collect on deficiency balances, and how much they can collect, so it is important that you discuss your situation with an attorney to make sure that you are not being asked to pay money that you are not legally required to pay.
If you are left owing a deficiency balance after your vehicle is sold by the finance company, you will need to work out a plan to repay the debt; if you fail to do so, the creditor may pursue legal action against you to collect the remaining debt. I encourage you to visit the Bills.com Debt Help Page for ideas on how to resolve any deficiency balance you may face, as well as any other debts you may have.
I wish you the best of luck in resolving the difficulties you are facing with your vehicle, and hope that the information I have provided helps you Find. Learn. Save.