Car Repossession Law
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One of the areas that bankruptcy protection may help is with a car repossession.
They can get their unpaid car. But what will you do when they sue you for the balance and possibly garnish your wages? |
Will I Lose my Car if I File Bankruptcy ?
People are understandably concerned about car repossession if the consumer files bankruptcy. The answer is almost always "no" if they remain current on the car loan. Keep current on your car and you likely will not lose it. Or if you're months behind on your car payment, and they're about to repossess the car, you can file a bankruptcy and let us take care of all the details.
I Owe on my Car Repossession
It adds insult to deep injury that they make you pay money -- often many thousands of dollars -- after your car repo. This is called a Deficiency Judgment or Deficiency Balance and can result in a wage garnishment. This balance will be taken care of and cleared by a bankruptcy. Contact us for more info.
Car Repossession Law
If you are behind on payments (even one), the creditor can repossess the vehicle. [California Civil Code 2983.2] They do not need a court order or judgment first. They are usually not allowed to take it from your garage, but can remove it from a public street or parking lot. They cannot use force or breach the peace [California Commercial Code 9503], but can hotwire the car or use duplicate keys. Car repossession law is usually consistent from state-to-state, but check your specfic state law for variations on the above.
Can I Get My Repossessed Car Back?
You have the right to get the car repo back by paying the overdue amount, plus any fines and costs. These can be rather steep. If you can't or won't pay, the repossessor must give you 15 days' notice of the auction. You can bid on your own car. You are entitled to get your belongings which were inside the car back, but only within the short period of time in your contract.
Repo Auction Fallout
If they get less than you owe as the winning bid (which is usually the case), you'll owe the rest. That is the deficiency balance referred to above. It usually is somewhere between $3,000 and $10,000 that you still owe on a car you don't have any more. Most people don't have that kind of money, so they usually sue you in a lawsuit. You owe it, so they usually win. That means they get a judgment against you. This turns into a wage garnishment where they take part of your paycheck. This is what happens if you do nothing and bury your head in the sand, pretending that just because you gave the car back in a voluntary car repossession, everything is ok.
Let the Car Go - Worry about the Debt You'll be Stuck With
The number one mistake people who have had a car repo in Los Angeles is giving the car back and pretending it's all over. Months go by and they think life has returned to normal. Wrong! You have a lawsuit in your future, and the longer you put it off, the more penalties and interest are going to hit you until you deal with it. By the time you call us, we can't help you because you've waited too long. Then you are stuck letting them suck your paycheck every pay period until you've paid the whole thing. Don't test them. Don't wait for the lawsuit and them to garnish your paycheck. Do something now and take care of it before you lull yourself into a false sense of security and end up paying the price.
CONTACT AN EXPERT NOW TO HELP WRAP UP YOUR CAR REPOSSESSION ONCE AND FOR ALL TODAY
