Expert: Barnette Law Offices, LLC - 11/18/2008

Question
Our car was taken during the night by the repoman. I am having trouble making the payments and am thinking about just letting them keep it. GMAC, told me that they dont advise this. My vehicle is selling for estimate $30 thousand and we owe $48 thousand. They said we would have to pay the difference and they would put a lien on my husband wages and all of our assets. Is this true? Can they really do this? What options do I have when we cant afford the car already?

Answer
Kassy:

Unfortunately, yes, GMAC can do this.  The will sale the vehicle at auction per Article 9 of the UCC and you will be responsible for the deficiency.  If they sue you and your husband and thereafter, obtain a judgment they can garnish his wages, attach you property, and levy your bank accounts.  The above doesn't apply in Texas or Florida.

I would advise you to seek bankruptcy protection if you're eligible.

Jason Barnette
Barnette Law Offices, LLC
http://www.barnettelawoffices.com
615-585-3885