Legal Question in Credit and Debt Law in California

Car Reposession
I started working at a car dealership, got talked into getting a 17k corolla by co workers, plus there was 4k rolled over from my old payment. Lost that job, parents co signed for the car but could not help me in any way, car got repossessed, they sold it at auction for 12k less than 3 months after I purchased it brand new, and after interest on a car I only owned 2 months, I owe almost 18k to a credit bureau. They have been kind enough to only charge me 200 a month, which I have been paying while trying to get a better job and be able to pay more. Just recently had to move out of the parents house and now they want to charge me 400 per month, which I cannot even afford. I dont know what to do or where to car, I spoke with someone once before and they said I am basically s.o.l. because of my parents co signing and not being able to do bankruptcy. Aside from just looking at the situation, obviously a dumb choice on my part, but so unfair, and Its not that I dont want to pay off my mistake, I do, I just am completely uncapable of surviving and paying 400 a month, I just moved into an apartment for $400 a month, and I have a few other small debts I am paying off too. Please help, im begging anyone who can help to give me any advice.

Asked on 11/06/08, 2:23 pm

2 Answers from Attorneys

David Gibbs The Gibbs Law Firm, APC

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Re: Car Reposession

I'm not sure what help anyone can be to you. I would suggest that you contact your local Legal Aid Society and see if you qualify to get an attorney to attempt to negotiate with the collection agency on your behalf. Short of finding someone to lend you the money with better repayment terms (which is unlikely in this current credit crunch), I don't know that you have much choice but to negotiate with the collection agency. Negotiating this on your own doesn't sound like it has been working, so you need some professional assistance, and given your lack of income right now, perhaps you will qualify for legal aid. One claim you might be able to assert is that the wholesale of the car was not commercially reasonable (read your loan documents - they generally require the lender to take commercially reasonable steps to resell the vehicle on default), and that the amount of "deficiency" you owe is totally inappropriate. The County in which you live should have a legal aid society (search the internet for ___ county legal aid society) and get a hold of them soon. Good luck - I really hope you can find someone to help you out.

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Answered on 11/06/08, 2:50 pm

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