CAR REPOSSESSION - HOW DOES IT AFFECT MY CREDIT?

Often times in this economy a repossession of a car is one way in which a judgment can end up in your credit report. Many people often had their car was repossessed because they are simply no longer able to keep up with the high interest rates and maintenance fees associated with certain cars. Once the car is picked up and towed away, they mistakenly feel as though the problem has come to an end. Unfortunately this is not the case. Here’s why

Once your vehicle is picked up, the finance company will add certain fees to your total balance owed. Then they will send your vehicle to be sold at auction. The outstanding balance on the note is often more than what the car is actually worth so the car is usually sold for less than what is owed.

The bank will now sue you for the left over balance. For example if you owed $10,000 on your vehicle and it sold at auction for $6,000 the lender will sue you for $4,000. Often times people are often unaware that these lawsuits pending and default judgments are entered. People usually find out that a default judgment has been entered against them when their wages, salaries or paychecks have been garnished or their bank accounts have been frozen.

Just because you have a judgment which resulted from a car repossession does not mean that you all without recourse. They are may be many available solutions available to you. It is important to speak with a qualified and experienced attorney who can explain all of your options to you in order to release the hold on your bank account and stop the wage garnishment. If you have any of these issues please do not hesitate to call the Law office of Abel Pierre at (212) 766-3323. You may also send us an email today.