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REPO - haunting after 4 years of silence


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Please help!

Back in Sep.2003 I had a car repo. I also had a co-signer who filed bankruptcy and was discharged in Aug. 2004 (the car loan was also included in the bankruptcy). Technically I never had the car in my posession, and even the title was in co-signer's name. Until today I had not received anything from the bank that financed the vehicle (NFB), but all of a sudden (almost after 4 years!) I got a letter "explanation of calculation of surplus or defficiency" according to which I owe over $8000..

If anyone has an advice what to do (where to begin), please help!...

Thank you in advance!


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I'm not sure I can help, but I do have some thoughts...

FIrst, do I understand that the car loan was in your name but the title was in someone else's. That someone else co-signed, then declared BK and included the car...right?

While your cosigner's BK probably didn't releive you of the obligation for the debt, it still sounds a little fishy to me...

I guess I'm thinking you should start with the lawyer that did the BK. Ask for an opinion as to what your obligations are. It could be that some bottom feeding junk debt buyer bought this debt from whoever financed it, and is just shaking the trees to see who they can scare into paying. Is the letter you got from the people you actually financed with?

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There are some defenses you can use against them.

First, they were required to provide you a notice of the auction and give you (not just the primary debtor) the opportunity to redeem the property. If they didn't do that, then the Uniform Commercial Code (UCC) says they cannot make you pay a deficiency.

The notice must contain the following elements:

*It must tell the debtor about his/her redemption rights.

*It must give enough time to redeem or to find other buyers before the resale.

*It must be given not only to the primary debtor but also to cosigners and guarantors.

*It must be correctly addressed.

*If it states the wrong information on the notice, such as wrong date or sale location, the notice is no good.

*It must be clearly written.

*If the creditor learns that the debtor did not receive the notice and takes no steps to correct it, the notice is no good.

*A debtor must be sent a new notice if the sale gets rescheduled.

Next, the UCC says they must send all debtor parties a notice of deficiency within 30 days of the sale of the reposessed property. That notice must include at a minimum the following:

1. the aggregate amount of obligations secured by the security interest minus unearned interest charges;

2. the amount for which the vehicle was sold;

3. the aggregate amount of the debt after deducting the sale price;

4. amount of expenses;

5. other credits; and

6. the amount of the deficiency (or surplus).

Again, it must be properly addressed and clearly written to all debtor parties not just the primary.

If the creditor does not follow these requirements, you may not only escape liability for any deficiency, but you may also have damages under the UCC for the illegal conversion of the property equal to the amount of the vehicle's original value.

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Thanks a lot. I must be asking too much, but do you know in what section of UCC I can find that the creditor is supposed to provide notice of deficiency within 30 days?.. I am trying to find myself that & in UCC, but so far no luck..

Found it! UCC Article 9.


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