Legal Question in Credit and Debt Law in California

Re: Default on personal contract

This is a loaded question. First, do you have the right to repossess? Generally speaking, the written contract between the parties must give you the right. Second, even with that right, you must comply with very specific statutory requirements both before, during, and after the repossession - and in general, the failure to do so will absolutely preclude you from obtaining a deficiency judgment.

Yes, provided that you have the right to repossess and sell the collateral, you are generally entitled to what is known as a deficiency balance, which will include the unpaid balance of the loan, less any proceeds from the sale of the vehicle, plus incidental costs of sale. You must then file a lawsuit to reduce this balance to a judgment.

This area of the law is highly technical. You should consult an attorney experienced in this type of law. We are happy to help if you need to proceed.