default on a truck loan
I have a truck loan for $900, and a personal loan for $300, I cant make the truck payment anymore and am thinking about defaulting. i can still make the personal loan amount. it is with a credit union. what can they do to my wages?credit? sueing?
1 Answer from Attorneys
Re: default on a truck loan
If your truck gets repossessed, you will be liable for what is called a deficiency. Deficiencies usually range between $10,000 up to $30,000. You would probably be sued for this amount. Also, if you do not pay back a personal loan, you can be sued.
Once a judgment is obtained, your wages may be attached, you and your wife's bank accounts may be emptied, a lien may be placed on your home, and in some instances your home may be sold. You will also have a judgment on your credit report which will prevent you from obtaining credit in the future.
You should probably talk to an attorney about your particular situtation to determine what the best course of action may be, whether it be negotiation, bankruptcy, or a complaint for violation of the Fair Debt Collection Practices Act.
You probably do have options at this point. Unfortunately, many people in a similar situation often do nothing, and thereby make their situation worse than it could have been.