Legal Question in Credit and Debt Law in California

If she has a promissory note, she could sue you for up to $7,000 in the Small Claims Court, or if you owe her more than $7,000, then she could sue you on that promissory note in the Superior Court. After she gets a judgment against you, she could attempt to levy on your assets, which may include the car, 25% of your wages with a wage garnishment, levying on your bank account, etc. If there is an attorney fee provision in the promissory note, then she would be entitled to recover her attorney's fees in having to sue you to collect her money.

The moral of this story: Be courteous and polite to your ex-girlfriend. Pay your girlfriend what she is owed, and keep track of the payments by keeping copies of all checks that you give to her. The best way is to pay her with personal checks so that you can show a court a copy of the payment checks if she denies that you paid for the car. If you do not have a checking account, make copies of bank checks or keep copies of the money orders that you give to her. If you give her cash, there is not record of the transaction unless she gives you a receipt, and even then, I would avoid paying her in cash.

If you cannot pay her all at once, start paying her what you can afford per month until she is paid in full. Tell her that is all you can afford but that you will pay her at least that amount each month until she is paid in full. Many times, if people trust that they will be paid over time, even though the payments are less than the agreement provides, they will not go to court. She could still sue you. However, if you pay nothing, your chances of getting sued go up exponentially.