With the increased number of houses that have gone into foreclosure since the 2008 recession, a lot more banks have sued individual homeowners who lost their home in a foreclosure sale when there was money left owing on the promissory note. Anytime you owe more money on a house (or a car) after the bank took it back, the bank can still sue you for the money still owing, and get a deficiency judgement against you.
Under the new law that was recently passed by the Florida legislature the bank has only one year to sue for a deficiency judgment. If they sue more than one year after they sold your home at a foreclosure sale then the law suit can be dismissed. In any event, a bankruptcy would wipe out any money that is owed to the bank.
The more common scenario is when a car is repossessed, sold at an auction, and there is a balance left on the car loan. A chapter 7 bankruptcy will wipe out any deficiency that is owing on the loan. Sometime it takes the bank several years to sue on the balance of the car loan.
If you have a car that was repossessed in the last 5 years and you are being sued by the bank for the balance of the loan you should contact the Ocala Bankruptcy Lawyer of Laurence A Steel to arrange a free consultation regarding your case.