Settlement
Auto Deficiency Settlement Amounts
Deficiency balances settle at 40-65% with original lender, 30-50% with collectors.
Read GuideAuto Loan Debt
Auto loan defaults leave two problems: the repossession and the deficiency balance (what you still owe after the car is sold). Both can be negotiated.
Key Guides
Hardship
Auto Loan Hardship Letter
Request deferment or restructuring before repossession happens.
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Settlement vs. Bankruptcy
Chapter 13 lets you keep the car and restructure the loan. Compare options.
Read GuideDealing with Collectors
FDCPA
Validate the Deficiency Debt
Deficiency collectors must prove the sale price and remaining balance are accurate.
Read GuideFree
Auto Hardship Letter Templates
Template #4 is specifically for auto loan hardship and deferment requests.
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