Legal Question in Credit and Debt Law in California

Re: Auto reposession

Any deficiency that exists after the car is repossessed and sold will become a debt you personally owe the lender. If they elect to pursue a judgement for the amount owed, then yes, it could result in wage garnishment, attachment of bank accounts and something called a judgment debtor exam in which you are compelled to go to court and answer in detail questions from the lender's attorney about where all of your assets are located. They can even compel you to turn over assets you have on your possession that day (like the expensive watch you might wear to court).

Best suggestion is to be proactive about the situation. If you are going to let the car go, contact the lender before they have to hire a repo agent, and voluntarily surrender the car. At that point you could attempt to negotiate some resolution of any deficiency, but they will probably want to wait and see what it actually is. At that point, you want to attempt to negotiate some sort of payment schedule and stick to it before they start collections.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.