Legal Question in Credit and Debt Law in Connecticut

Re: Bill Collectors

yes you are supposed to pay back any deficiency on the loan even if the car was repoed. The deficiency is the difference between what you borrowed to buy the car and what remains after they credit the amount they got for selling the car at a repo auction. They cahrge you with the expenses associated with the repo and auction, so often you owe almost as much as the unpaid loan balance...You have the right to make sure the deficiency is correct and that they got full value when they resold your car. HOWEVER, If you have no money (social security is exempt from collections) you may be judgment proof. That means even if they get a judgment against you they may not be able to actually get at your assets. You should take steps to make sure that your ss funds are in a special protected account at your bank so that the funds will not be restrained by your creditor after judgment is entered...talk to your banker...so they are on the same page as you...you should know that if you deposit regular funds into your social security account the protections are removed...so you should ONLY withdraw funds from the account...open a separate account for checking if you need such an account for bill paying, etc. funded by the ss account.

Re: Bill Collectors

I handle cases like this all the time. There are laws in place governing the repayment of debts specificaly regarding car loan that are hyper-detail oriented. In order to help you, I would need to see paperwork such as the retail installment contract and car registration and other documents. However, you should give us a call with more questions. 203.540.5228. We are licensed in NY and CT.