Boat repoed, CA/Lawyer threatening suit, dved and got response.. Need help

[JasonG]

I copied this from the legal section of the forum because this section seems like it would be better for my issue.

Below is the back story.

Hello everyone, I am so glad I found these forums. I am in some pickle here with a debt collector.

Here's the backstory:

I financed a boat a few years back. Long story short, the boat got repoed and they auctioned off the boat. I owed something like 11k on the boat and they were only able to get about 6k for the boat at auction.

Which leaves me in the hole for about 5k on the debt. I've tried numerous times to reach a settlement with TRS over the phone. But everytime I tell them my offer per month, they tell me it is not suffiecent and not satisfactory. They want something like 200 per month. Now currently with my bills and the state of my finances, I can only afford $50-$75 per month on this debt.

The last lady I spoke with said that they are refering my case to their legal department for review to see if they will pursue legal action. I told her, wouldn't you guys rather setup a payment plan and get this debt on the road to being paid rather then sue me? She said no.

3 weeks later (which was yesterday), I get a letter in the mail from another attorney/debt collector stating that I owe the 5k and if I do not respond within 30 days to his letter then he will suggest to his client (trs) that they pursue legal action.

Now if my memory serves me right, TRS bought the loan from the original lender before they repoed the boat because it was dilequent. Which means they probally only spent pennies on the dollar according to this website.

Am I responsible for the fact that TRS only got 6k for the boat at auction?

Should I send a validation letter?

What should I do? I have read this site and all its articles that I can find that might pertain to my case, but I am very unsure as to what way to go.

Please help me.

Now since I originally posted this, the Lawyer in PA who is threatening to sue me has sent me a proper reponse to my DV.

How long until he does file suit?

Should I send him a letter stating that I cannot afford the full 5600 and that I would like to set up a payment? Are there any sample letters like this on the site? Or should I just call them?

What do I do next considering he did dv me correctly and I do owe the debt?

[bigjohnstud4200]

When was the repo? Did they notify you that before the auction about their intent to auction? Did they notify you after the auction and tell you what the deficiency was and how they calculated it?

[JasonG]

When was the repo? Did they notify you that before the auction about their intent to auction? Did they notify you after the auction and tell you what the deficiency was and how they calculated it?

Yes and Yes.

[bigjohnstud4200]

Yes and Yes.

Unfortunately, it seems that they have follow the law and they have the right to demand full payment now and sue if you don't have it. If they sue and get a judgment you will have another mark on your credit and then they can seek garnishment. If they know where you work, it's not too hard. They can also levy your bank accounts. You might want to think about contacting an attorney. When attorney's are involved, they sometimes work out better payment arrangement since it's a risk for both sides to go to court.

[JasonG]

Unfortunately, it seems that they have follow the law and they have the right to demand full payment now and sue if you don't have it. If they sue and get a judgment you will have another mark on your credit and then they can seek garnishment. If they know where you work, it's not too hard. They can also levy your bank accounts. You might want to think about contacting an attorney. When attorney's are involved, they sometimes work out better payment arrangement since it's a risk for both sides to go to court.

I wish I had the money to go to an attorney.

Do you know if there are any sample letters out there that I can use to set up a payment plan to settle this with them?

How long do you think until I actually get served?