Legal Question in Credit and Debt Law in California

I creditor just obtained a default judgement against me and today in a debtor exam he inquired about my two auto's I own. His comment was those were his auto's now and inquired as to the value of the auto's and then inquired about the loan on the auto's. He was questioning me extremely aggressively regarding the value of the auto's and then when he found out that I owed more on each Auto than the value of the car currently, he changed his tatic to get me to change my answer so that I went from giving him a value to stating I really don't know the value of the auto's because I have not checked lately. The creditor is not the lien holder on the vehicle either.

My question is I have read where a creditor can not sieze an asset if the loan on the asset is more than the current value of the asset? I don't know if that is true or not. But I was wondering why once the attorney found out I owed more on the cars than they are worth that he immediately starting back tracking and wanted me to give him an answer that I did not know how much the cars were worth bascially.

I am gravely concerned since the attorney knows how much the loan is on each auto at this point, that he will go into the court room and represent to the judge that the value of the car is worth more than the loan and sieze the cars.

Also if the attorney can just sieze the cars at this point because he does have the default judgement, does the attorney have to file any motions or paper work to sieze the cars or can he just hire a towing company just to come pick them up without my knowledge? Does the attorney/creditor have to notify me at all that they have obtained and order or going to obtain an order to sieze the cars?

Thank you


Asked on 10/16/10, 12:47 am

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

I would be very surprised to hear they are really interested in your cars. My best guess is they are just trying to scare you.

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Answered on 10/21/10, 1:31 am
Tony Carballo Carballo Law Offices

If you owe more on the cars than their value then there is nothing of yours that can be taken. Therefore, you need not worry that the judgment creditor will take your vehicles. And yes, there is paperwork that needs to be done and notice requirements to take a car to satisfy a judgment. Of couse, none of this applies to the banks that have the liens on your vehicles. The lienholder on a vehicle can just take it if you do not pay because technically it is theirs. So make sure you make the car payments if you want to keep you wheels....

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Answered on 10/21/10, 6:30 am


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