Car Repossession

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.

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 Los Angeles 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.

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 guys who did the California car repo must give you 15 days' notice of the auction. You can bid on your own car. 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. You are entitled to get your belongings which were inside the car back, but only within the short period of time in your contract.

If you're in Los Angeles, Southern California and willing to do a bankruptcy for all of your credit, we can help undo the car reposession.