In most cases, when a lender repossesses a vehicle, they may sell the vehicle to recover the outstanding debt. However, any remaining balance due on the loan after the sale of the vehicle is generally considered a personal debt, and the lender typically cannot forcibly seize or sell other assets to satisfy that debt.
If you have other assets, such as a second car or real estate, the lender may take legal action to pursue payment of the remaining debt. This could involve filing a lawsuit or obtaining a judgment against you. If a judgment is entered against you, the lender may be able to garnish your wages or seize your assets to satisfy the debt.
It's essential to understand that the specifics of repossession laws and creditor rights vary from state to state. If you are facing repossession or have concerns about your ability to repay a car loan, it's advisable to consult with a legal professional to get accurate and personalized advice based on your circumstances and local laws.
