Car Repos/Ohio

Please keep in mind that there may be unique circumstances to your case that I am unaware of. That said I can tell you about the repossession process in general. The overall repossession and debt collection process is set in ohio law. There are minor details, especially in regards to the debt collection, that will depend on the bank and how much you still owe. To answer your first question if your car is repossessed, you are still responsible for the remainder of the loan after the repossession and resale process has occurred.

The repossession process generally occurs as follows. Once your car is repossessed, the bank will send you notice that the car has been repossessed, how much you would need to pay to get it back, and when the car is scheduled to be sold at auction. After the car is sold at auction, you will receive another notice from the bank informing you as to the amount the car was sold for and the fees resulting from the repossession. You will then owe the remaining amount of your loan + fees - the amount the car was sold for at auction. If the car was sold for more than you still owe, you are entitled to the difference. (This almost never occurs).

Once this process has occurred, the bank will attempt to work with you. You may even be able to settle for a lesser amount. It is possible that the bank might seek a wage garnishment through the court, however it is generally not the first thing that is done. It's an expensive process, if they can negotiate with you for payments or a settlement, they will generally attempt to do so first.

The bottom line is, don't give in to the process just yet. Especially in these times, the bank often willing to work with you. In the event that they will not work with you, you might consider whether it would be better to sell the car and use the sale money to help pay off your loan (This generally results in a larger sale price than what might be received at auction.) Even if all else fails, working with the bank after the auction has occurred can still be in your favor. Most debt collection actions that force payment require a court and are thus pretty expensive.