Summary
In Illinois, lenders can pursue deficiency judgments if a repossessed car sells for less than the loan balance. You can challenge the sales commercial reasonableness, request debt validation, or negotiate a settlement. If a deficiency judgment is obtained, wage garnishment is possible, but certain income like Social Security, unemployment, and public assistance benefits are exempt. Consider consulting a consumer protection attorney for personalized advice.Full Conversation
I returned a car to a bank after not being able to make payments. I put * down and paid * in. They sold the car and are suing me for * more dollars. The only paper i signed was the loan paper
****, it sounds like you might be dealing with a deficiency judgment, which occurs when a car is repossessed and sold for less than the balance owed on the loan.
Which state are you located in? This will help me provide more specific information regarding your rights and options.
Illinois
Hi ****! Here's some relevant information regarding your situation in Illinois:
- Illinois allows lenders to pursue deficiency judgments.
- The lender must notify you of the sale and the deficiency amount.
- You can potentially challenge the lawsuit if the sale was not conducted in a commercially reasonable manner.
Would you like information on potential defenses or steps to take next?
Yes
****, here are some potential defenses and steps you can take next:
- Challenge the Sale: Argue that the sale was not commercially reasonable.
- Debt Validation: Request the lender to validate the debt.
- Negotiate Settlement: Offer a settlement amount or payment plan.
- Seek Legal Help: Consult with a consumer protection attorney.
Would you like more details on any of these steps?
Can they garnish my wages?
Yes, in Illinois, if the lender obtains a deficiency judgment against you, they can potentially garnish your wages to collect the amount owed. Would you like more information on how wage garnishment works or how to potentially prevent it?
Yes
In Illinois, wage garnishment is possible if a lender obtains a deficiency judgment. Here's some information on how it works and ways to potentially prevent it:
- Garnishment Process: Lender must sue and obtain a court judgment.
- Exemptions: Some income is exempt from garnishment.
- Preventing Garnishment: You can negotiate a payment plan or challenge the judgment.
Would you like more details on exemptions or negotiation strategies?
What income is exempt
In Illinois, the following income is generally exempt from garnishment:
- Social Security benefits
- Unemployment benefits
- Public assistance benefits
- Workers' compensation
- Retirement benefits
- Child support and alimony
Would you like more details on any specific exemption or information on how to assert these exemptions?
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