[WSBAPT] Secured Creditor/Deficiency

[steve at aitalaw.com]

This is a new one for me. 

 

I know that RCW 11.40.135 says that a secured creditor's right to realize
upon the security is not affected by whether or not the creditor filed a
claim. But what about if there's a deficiency? 

 

In this case, a vehicle that was owned by the Decedent was in the possession
of the Decedent's girlfriend, who refused to return it to the Personal
Representative. No payments were made after the Decedent's death (the PR
didn't even know that the car belonged to his dad, he thought it was his
dad's girlfriend's car until the late payment notices started coming), so
the lender repossessed and sold the car for about $21,000. The loan had a
balance of about $31,000, so now the lender is demanding payment of the
$10,000 deficiency from the Estate, but the creditors' claim period has
expired. Is the lender entitled to the deficiency without filing a claim? Is
that part of "realizing" upon the security?

 

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P. Stephen Aita

Attorney at Law

Admitted in Washington & Idaho

 

3010 Harborview Dr., Suite 301

Gig Harbor, WA  98335-1977

Tel.: (253) 858-5434

Fax: (253) 276-2373

 

steve at aitalaw.com

www.aitalaw.com

www.facebook.com/aitalaw

 

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