<prompt> Human: I dont know if this is the proper place for this and googling the question is difficult because the only articles are for the consumer side of things. Hypothetically lets say the bank just repod my car. I owe 22k left on the loan and they sell the vehicle at auction for 10k. How does the bank get the other 12k back assuming im not going to pay it?Assistant: By suing you. After winning the lawsuit they would garnish paycheck or go after any assets you have, such as in your bank account or elsewhere. Not all options for enforcing a judgement are available in all states, no wage garnish for this in Texas, for example.Human: Doesnt the bank at some point sell your debt to a collector for lets say 5K of that 12k you owe. Can they writeoff the remaining 7k when it comes time for them to do their taxes? The point Im trying to get at is that even if a consumer defaults on their loan the bank never loses do they?Assistant: Writing off a 7k loss doesnt save them 7k of taxes, it saves them from paying taxes on 7k. They still lose money.Human: Thats semantics at that point isnt it because they are going to owe way more than that when they pay taxes?  <response>: The semantics are important since youre suggesting this: The point Im trying to get at is that even if a consumer defaults on their loan the bank never loses do they?Which is not correct. They do lose a significant portion of it. If they are able to write it off, they only get a small percentage of it back in taxes. 