Restrictions on Deficiency Judgments in
Consumer Credit Sales —
(1)This section applies to a consumer credit
sale of goods or services.
(2)If the seller repossesses or voluntarily accepts surrender of goods
which were the subject of the sale and in which the seller has a security
interest, and the cash price of the goods repossessed or surrendered was
four thousand dollars ($4,000) or less, the buyer is not personally liable
to the seller for the unpaid balance of the debt arising from the sale of
the goods, and the seller is not obligated to resell the collateral.
(3)If the seller repossesses or voluntarily accepts surrender of goods
which were not the subject of the sale but in which the seller has a
security interest to secure a debt arising from a sale of goods or
services or a comb
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Restrictions on Deficiency Judgments in
Consumer Credit Sales — (1) This section applies to a consumer credit
sale of goods or services.
(2) If the seller repossesses or voluntarily accepts surrender of goods
which were the subject of the sale and in which the seller has a security
interest, and the cash price of the goods repossessed or surrendered was
four thousand dollars ($4,000) or less, the buyer is not personally liable
to the seller for the unpaid balance of the debt arising from the sale of
the goods, and the seller is not obligated to resell the collateral.
(3) If the seller repossesses or voluntarily accepts surrender of goods
which were not the subject of the sale but in which the seller has a
security interest to secure a debt arising from a sale of goods or
services or a combined sale of goods and services and the cash price of
the sale was four thousand dollars ($4,000) or less, the buyer is not
personally liable to the seller for the unpaid balance of the debt arising
from the sale.
(4) For the purpose of determining the unpaid balance of
consolidated debts or debts pursuant to revolving charge accounts, the
allocation of payments to a debt shall be determined in the same
manner as provided for determining the amount of debt secured by
various security interests (IC 24-4.5-2-409).
(5) The buyer may be liable in damages to the seller if the buyer has
wrongfully damaged the collateral or if, after default and demand, the
buyer has wrongfully failed to make the collateral available to the
seller.
(6) If the seller elects to bring an action against the buyer for a debt
arising from a consumer credit sale of goods or services, and under this
section the seller would not be entitled to a deficiency judgment if the
seller repossessed the collateral, and the seller obtains a judgment:
(a) the seller may not repossess the collateral; and
(b) the collateral is not subject to levy or sale on execution or
similar proceedings pursuant to the judgment.
(7) The amounts of four thousand dollars ($4,000) in subsections (2)
and (3) are subject to change pursuant to the provisions on adjustment
of dollar amounts (IC 24-4.5-1-106). However, notwithstanding IC 24-4.5-1-106(1), the Reference Base Index to be used under this
subsection is the Index for October 2012.
Formerly: Acts 1971, P.L.366, SEC.6. As amended by
P.L.137-2014, SEC.15; P.L.186-2015, SEC.21.