Is This True?
I was talking to a friend of the family who is an attorney this is what he explained to me. In this state if you have a car loan and it is not reafirmed by the finance company. Latter on down the line if you give it back voluntary or they take it they can only get what they can out of it exp if they sell it for 10,000 and you owe 13,000 they can not come after you for the extra 3,000 that they lost on the resale. Does this sound right?
Answer:
It depends on which state you are in. In New York, this would not be true, the creditor could take the collateral and still come after you for any difference. But other states are different. This is correct. If you receive a discharge and do not reaffirm a loan secured by something, all that the lender can do is to take possession of the security. It can't go after you personally for any deficiency.
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