Deficiencies from Home Foreclosure or Car Repossession in St. Louis
When a home is foreclosed on, or when a car is repossessed, the result is almost always the same: a deficiency debt is created. A deficiency is the balance of the loan that is still owed after the asset has been sold. But filing a St. Louis bankruptcy will take care of this debt once and for all.
WE GET RID OF ALL DEBT FROM A FORECLOSURE OR REPO
For instance, if your car has been repo’ed, the lot will hold the automobile for a short period of time before selling it. But the amount that is received at the sale is usually far less than what is still owed on the loan. So if you still had a balance of $10,000 when the car was repossessed, but the lot was only able to sell it at auction for $4,000, that means that there is an unpaid balance of $6,000 that is still owed. This $6,000 is described as the ‘deficiency’ (i.e. the difference between what is owed and what the car actually sold for). And the car company will demand that you pay for this deficient amount, perhaps even filing suit against you in order to get it.
Many people are surprised that the creditor will come after an individual for such a deficiency, but rest assured, they will. This same scenario applies to homes that are foreclosed on, and rental leases that are broken before the end of their terms. But the St. Louis bankruptcy attorneys at The Law Office of Jennifer Alter-Rieken have discharged millions of dollars in deficiency debt over the years. Our staff has the knowledge and experience on how to handle such matters, and is prepared to help guide you towards the fresh start / clean slate that you deserve. Whether it is in the form of St. Louis Chapter 7 bankruptcy or St. Louis Chapter 13 bankruptcy, our team is ready to help.