Photo credit: Debt Tales The Bank and You Blogspot
A lot of times a client will come to the office to consult with me and ask why they owe money for something like a car that was repossessed or a home that was foreclosed on. The answer is very simple: the creditor has a deficiency judgment against you.
Let’s say you have an auto repossession. At the time your car was repossessed, you owed $20,000. When the lien holder took back the vehicle, they sold it at an auction for $15,000. That difference of $5,000 is what you owe.
The same applies to a home that was foreclosed on. Even worse if the creditor files a lawsuit against you to collect, that judgment lasts for 20 years!
Can I Get Sued Over a Deficiency Judgment
Yes, you can be sued over a deficiency judgment and when you receive notice of one, you need to act fast to avoid the lawsuit proceeding and having your wages garnished, bank accounts frozen, or lien placed on personal property or real property.
Note, it has been my experience that creditors will even tell you that you can’t wipe out that debt with a bankruptcy. They are lying. You can absolutely wipe out a deficiency judgment with a bankruptcy. It’s very common and done all the time.
Getting harassing calls from a creditor for a deficiency judgment or a lawsuit because of one? Then contact attorney Alex Hernandez for a free consultation.
Saturday appointments available.
Representing clients in the areas of Chapter 7 Bankruptcy, Family Law/Divorce, and car and motorcycle accidents for 20 years.
(904) 712-5565 or (305)-688-LAWS (5297).
*Se Habla Español