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SomeguyintheMidwest

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Car loan deficiency lawsuit: What are my/ our options?
Last year in October, I had a vehicle that was repossessed due to being underemployed after losing a good paying job earlier in the year. The car was auctioned off in January-February and I still owed $15,000 for the remainder of the loan. I just received a summons in the mail for the $15k deficiency and have 28 days to answer. I have already been through Chapter 7 Bankruptcy back in June 2010, so I cannot file for Ch7 until 2018. I have considered filing for Chapter 13 bankruptcy, but I would like to explore/ entertain other options before I decide to go the bankruptcy route. I would like to keep that as a last resort. I would like to see if they would settle or work out a payment plan, but I have $22k in student loans and my payments start this month ($269/ mo.), so I would not be able to offer much. I can offer them maybe $100 a month. They really cannot say no to my offer, right? I've heard they HAVE to accept my money. I'm just worried if they will still continue with the lawsuit and will garnish my wages.

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I am not sure what to advise, but giving them a hundred dollars a month would be a life long obligation if they are allowed to charge interest in your state. If you really don't have any money, you may be better off letting a judge decide what to do. As far as giving them the $100 per month, I really don't think that can prevent them from trying to get a judgement, you will have to check the laws in your state. Be sure to go to court, if you don't show you will lose. Be careful if you have any money in the bank as well as they may seize that.

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Also, I do have a $326/ month car payment as well as rent, utilities and other bills. My wife is also a signature on the loan as well, so it is affecting her as well. 

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