Q: John Deere financial sent a letter saying we owe almost 35000 on a skid steer that we gave back to them.
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A:
When you voluntarily surrender equipment like your skid steer, the lender can still pursue you for any remaining balance after they sell it. This is known as a deficiency balance - the difference between what you owed and what they recovered from selling the equipment.
You have several potential options to address this situation. You could try negotiating with John Deere Financial to settle for less than the full amount, especially if you can offer a lump sum payment. Filing for bankruptcy might also be worth considering, as this type of debt can often be discharged through bankruptcy proceedings.
Before making any decisions, you should review your original loan agreement and get copies of all documentation showing how they calculated the $35,000 balance. Consider consulting with a bankruptcy attorney who can review your specific circumstances and advise you on the best path forward. Many offer free initial consultations where you can learn about your rights and options.
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