If a creditor sells repossessed property, any amount remaining after paying the debt must be returned to the debtor.

Question

Quizplus · Accepted Answer

After a creditor repossesses and sells the property, if there is any surplus after covering the debt and associated costs, this surplus must be returned to the debtor. This is because the creditor is only entitled to recover the amount owed plus any reasonable expenses related to the repossession and sale, not to gain an additional profit at the debtor's expense.

If a Creditor Sells Repossessed Property, Any Amount Remaining After