Pennsylvania Consolidated Statutes

12 Pa. Cons. Stat. § 6261 (2026)

Deficiency judgment.

✓ current as of May 2026

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§ 6261. Deficiency judgment.

(a) General rule.--If the proceeds of a resale under section 6260 (relating to sale of motor vehicle after repossession) are not sufficient to defray the expenses regarding the repossessed motor vehicle, including the costs under section 6256 (relating to buyer's liability for costs), the net balance due on the installment sale contract and the amount of accrued late charges authorized by this chapter, the installment seller or holder may recover the deficiency from the buyer or from any person who has succeeded to the obligations of the buyer.

(b) Reasonable value.--

(1) The reasonable value of the motor vehicle at the time of resale shall be determined in an action or a proceeding brought by:

(i) the installment seller or holder to recover the deficiency; or

(ii) the buyer.

(2) The resale price of the motor vehicle is prima facie, but not conclusive, evidence of the reasonable value of the motor vehicle.

(3) The determined reasonable value or the resale price of the motor vehicle, whichever is higher, shall be credited against the buyer's indebtedness.

(c) Reasonable costs.--In an action or a proceeding for a deficiency, the buyer may have the reasonableness of the costs incurred determined under section 6256.

(d) Deficiency notice.--Within 30 days after the sale of a repossessed motor vehicle, the installment seller or holder shall deliver in person or send by registered or certified mail to the last known address of the buyer a deficiency notice containing the following:

(1) The sale price of the repossessed motor vehicle.

(2) The itemized costs associated with the repossession and sale of the repossessed motor vehicle.

(3) The amount of the deficiency owed by the buyer.

(e) Nonapplicability.--Subsections (b)(1)(ii) and (d) shall not apply to a deficiency on a resale that was held prior to the effective date of this section.

Cross References. Section 6261 is referred to in section 6260 of this title.

Notes of Decisions

Cited in 2 cases (2 in the last 5 years), 2022–2022 · leading case: D'Happart, S. v. First Commonwealth Bank, 282 A.3d 704 (Pa. Super. Ct. 2022).

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D'Happart, S. v. First Commonwealth Bank, 282 A.3d 704 (Pa. Super. Ct. 2022). · cites it 2× “12 Pa.C.S. § 6261(a), (d) (some emphasis added).”

D'Happart, S. v. First Commonwealth Bank (Pa. Super. Ct. 2022). “12 Pa.C.S. § 6261(a), (d) (some emphasis added).”

— 12 Pa. Cons. Stat. § 6261(a) — 2 cases

D'Happart, S. v. First Commonwealth Bank, 282 A.3d 704 (Pa. Super. Ct. 2022). “12 Pa.C.S. § 6261(a), (d) (some emphasis added).”

D'Happart, S. v. First Commonwealth Bank (Pa. Super. Ct. 2022). “12 Pa.C.S. § 6261(a), (d) (some emphasis added).”

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