A deficiency balance is the amount of money remaining on an outstanding loan after the creditor sells the collateral attached to the loan. For example, if your car is repossessed, your creditor can sell the vehicle to help cover your past-due payments. If the price of the car doesn’t entirely cover the unpaid loan amount, there may be a deficiency balance remaining on the loan. The creditor could file a deficiency judgment against you, making you financially responsible for the remaining balance. The deficiency would also stay on your credit report until it is completely paid off.