If you owe more than the car is worth what happens if it gets repossessed?

When you owe more than your car is worth and your car gets repossessed, the lender will sell it to recover the amount you owe. If the sale proceeds are not enough to cover the debt, you will still owe the lender the difference. This is called a "deficiency balance."

The lender can take several steps to collect a deficiency balance, including:

* Suing you in court. The lender can sue you for the deficiency balance and obtain a judgment against you. If the lender wins the lawsuit, it can garnish your wages, bank accounts, and other assets to collect the debt.

* Repossessing other property. If you have other property, such as a home or another car, the lender may be able to repossess it to satisfy the debt.

* Selling your personal property. The lender may be able to sell your personal property, such as furniture, electronics, or jewelry, to collect the debt.

* Reporting the debt to the credit bureaus. The lender may report the debt to the credit bureaus, which can damage your credit score and make it difficult for you to obtain credit in the future.

To avoid the negative consequences of a car repossession and deficiency balance, it is important to make your car payments on time and in full. If you are struggling to make your payments, you should contact your lender immediately to discuss options for modifying your loan or deferring payments.