Hello! Does anyone know by chance if we can use the proceeds from the sale of a repossessed vehicle to pay off the overdraft balance of a checking account? Are we allowed to just deposit the funds in the account, or do we have to send the debtor a check for the full surplus?

First refer to your loan agreement and account agreement. Next double check with bank legal counsel to see if permissible. Each State has different rules, but ultimately it will be explained in your loan agreement and account agreement with the debtor.