Legal Question in Civil Rights Law in California

My husband and I were trying to sell our car, the people who wanted it said they needed more time to find financing, and wanted to take over our payments until then. So we drew up a contract and had it notarized stating the stipulations of the "purchase". 6 months later we were informed that they were going to file BK and needed us to amend the contract to show a payment of 400 not 665 which we had agreed to for the BK court to let them keep it. We told them no, that we could not do that. I got really nervous about them filing BK and how it would effect us, and came across the fact that our contract was illegal, We notified them immediately and explained what we had found out, and that the car would have to be paid in full if they wanted to keep it, or we'd have to take it back, either way the contract had to end because it was illegal. They couldn't come up with the money after 3 weeks and when we were supposed to meet them to take the car back they went and filed a small claims suit stating that we refused the full payment for the vehicle, and they never had the money. They did not make any more payments and are evading repossession that we have hired, they are "hiding" the car and local PD say there's nothing they can do to help us get our car back even though we still hold title!! In our contract we stated that if they were even 1 day late past the due date that we had the right to repossess the vehicle! what do we do now??? they're asking the court to let them pay the car off, since it's been in there possession without them having to make the payment for the last 2 months. We have had to make those missing payments,insure the car, pay repossession fee's, and pay to have keys made from the dealer that we bought the car from. It was a way for them to buy more time and we've had to take on the additional expenses. do we counter sue? we just want the car back now after the additional money we've had to shell out. Please Please Help!!!


Asked on 3/22/11, 8:40 pm

1 Answer from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

If you sue them, repossess the car, or even call them while the bankruptcy is ongoing, you could be fined by the bankruptcy court. File a timely claim with the bankruptcy court including all your expenses (the contract you drafted does provide for recovery of attorney fees and costs of collection, right?) Lessons learned: 1) Don't draft your own contracts. 2) If you ever again sell a car get cash on the barrel head. Consult a bankruptcy lawyer in your locality.

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Answered on 3/22/11, 9:09 pm


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