What happens when your car is repossessed in NC?

Once your car has been repossessed, your creditor has the right to ask you to pay the late payments plus the cost of repossession. The creditor may also demand that you pay off the balance of the loan in full. After the vehicle has been sold, you will be notified by the creditor.

What happens when you repo a car in NC?

Any proceeds will be applied towards your unpaid balance. Although, a creditor may allow you to cure any late payments and return the car, they are under no duty to do so. You do however have the right to pay the balance in full before the sale or even file a Chapter 13 bankruptcy to regain possession and resume payments.

Can your wages be garnished if your car is repossessed?

Can Your Wages be Garnished if Your Car is Repossessed? 1 Wage Garnishment: Only One Option. In order for a lender to garnish your wages, they must get a court order following the laws of your state. 2 If You Owe a Deficiency after Vehicle Repossession. 3 The Best Defense against Repossession is a Good Offense. 4 If You Need a Vehicle. …

What happens when a car is repossessed by a bank?

Having your car repossessed doesn’t get you off the hook for your obligation to pay the entire balance of the loan. If the proceeds from the sale of the vehicle are not enough to cover the balance of your loan, the remaining portion is called the deficiency balance. In most states, your lender can sue you to collect this deficiency.

Can a creditor garnish your wages after a repo?

Depending on the amount of your deficiency, the process of bankruptcy may be overkill (deficiency balances aren’t typically that high). Truthfully, before you even need to consider the possibility of a creditor garnishing your wages after a repo, you should avoid repossession altogether.

Can a creditor garnish your wages in North Carolina?

Most creditors can’t garnish your wages as soon as you fall behind on a credit card payment or medical bill. Usually, a creditor must file a collection lawsuit in court, win, and get a money judgment indicating the amount that you owe the creditor. North Carolina is unique in that it doesn’t allow a creditor with a money judgment to garnish wages.