Legal Question in Credit and Debt Law in Tennessee

Re: Balance on a repossesed automobile

The balance between the amount owed and

the resale amount is what is termed the

deficiency. It appears that you are being

sued for the amount owed without there

ever having been a resale of the car.

You should find out the amount of the

resale. If the car has not been sold,

then it would appear as though the

finance company may have serious

problems in explaining to the court

why you are being sued for the amount

owed with the finance company retaining

possession of the car also.

Re: Balance on a repossesed automobile

Generally a creditor has the right to seek any deficiency resulting from the sale of property securing a debt. Usually, the amount of the deficiency will be less than the initial amount owed, but with the addition of interest on the debt, your obligation can increase rapidly. If it is true that no attorney has been hired, however, it is improper to assert any liability on your part for attorney's fees.

If you have any further questions, please do not hesitate to contact me.