After a vehicle repossession, can the company come back sue for the balance of the loan?

My fiance had two vehicles repossessed a few years ago after his ex-wife defaulted on the loans. Can they still come back after all this time and try to sue him for the loan balances even if they resold the vehicles?

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4 Comments

  1. wall_coatings
    Posted May 21, 2010 at 1:26 am | Permalink

    yes they can comeafter you for the balance of what is owed after they auction it off or they might not

  2. laughter_every_day
    Posted May 21, 2010 at 2:24 am | Permalink

    yes. The loan is independent of the security interest in the car. They will sell the car at auction to try to get their money back, but if it does not bring enough to pay back all that you solemnly agreed to pay, then they will seek a judgment for the balance.

  3. wizjp
    Posted May 21, 2010 at 3:21 am | Permalink

    unless the debt is beyond the statute of limitations for your state, it’s a deficency balance, and yes they can

  4. sensible_man
    Posted May 21, 2010 at 3:57 am | Permalink

    Yes. The dealership has a right to get paid for the whole cost of the vehicle. A defaulted loan allows them to repossess, sell and sue for the amount not brought in by the sale.

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