Repossession of a Vehicle
If a debtor defaults on a car loan, the lender will often repossess the vehicle. Usually within several weeks, the lender will then sell the vehicle at auction and then apply the sale proceeds to the defaulted loan.
In a Chapter 7 case, the debtor is permitted to discharge the deficiency through the bankruptcy process. the deficiency is the difference between the amount of sale proceeds and the loan balance.
If you have questions about the remedies available in Chapter 7 bankruptcy, call our office for a free consultation.