Legal Question in Credit and Debt Law in California

Car Repossession and Collection

A debt collection agency sent me a letter on November 30, 2006 stating that I have a balance of $6,586.09 for a car that was repossesseed in September of 2005, right before I went into my first year of college. The collection agency has said that its client, Toyota Motor Credit, would be willing to settle the debt for $4,200 in two monthly payments of $2,100. I do not have $4,200 nor do I have $2,100. They have told me to seek other means such as through my family to get a loan. My parents filed for Bankruptcy in May/June of 2005 and I have no one else to co-sign to get a loan from. My father was forced to retire living on a meager income from social security and my mother only makes enough money to support our 3-person family.Both of my parents have nothing in their savings accounts. We also do not own any property. I am also still a full-time student receiving student loans and I am only able to work to support my college expenses. I do not know how to resolve this.


Asked on 12/30/06, 2:36 pm

1 Answer from Attorneys
Robert F. Cohen Law Office of Robert F. Cohen

Re: Car Repossession and Collection

This could eventually wind up in a lawsuit, and interest and attorney's fees will be tacked on as well. You can try to work with them and try to get payments down to a manageable level. You also might qualify for a Chapter 7 bankruptcy, but it would be a shame to do so at this early stage in your life. It's probably wise not to borrow from others to pay this debt, because you'd be compounding the problem and angering friends and family when you can't repay them. How about talking to the financial aid office at your school and seeking their advice?

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Answered on 12/30/06, 3:30 pm


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