Legal Question in Credit and Debt Law in California

Deficiency balance liability

In a vehicle repossesion, can a corporation pursue legal action for a deficiency balance under California law? Please quote the relevant statute.


Asked on 1/31/03, 2:16 pm

1 Answer from Attorneys
Sheldon G. Bardach Law Offices of Sheldon G. Bardach

Re: Deficiency balance liability

Deficiency judgments are the norm, it is only when there is an ant-ideficiency statue on the books that one cannot collect the deficiency of recovery in a collection. For example, purchase money mortgagors are prohibited from pursuing a deficiency against the individual who received a purchase money loan. In California, Civil Code Section 2983.8 prohibits deficiency judgments after the sale security sale of a motot vehicle, but read all parts of that section.

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Answered on 2/03/03, 1:47 pm


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