Legal Question in Credit and Debt Law in California

Leassed vehicle

My husband and I leassed a sweeper in 2004. The total cost was $55000 including interests. We had it for almost 2 years and paid about $16,000. In 2006 we return it because our small business failed and we could no longer pay for it. The finance company claims that they sold it for $20,000 and now they are coming after us for $15,000. We do not own any assets, if we go to court and we prove that we cannot pay this money, what is likely to happen? Please let me know I am desperate.


Asked on 7/09/07, 1:37 pm

2 Answers from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: Leased vehicle

Inability to pay is not a legal defense. You might be able to work out a repayment plan with the leasing company or you might be able to show that he leasing company did not do enough to get a better price for the vehicle.

You may have other debt problems associates with the business, so a consultation with a local bankruptcy attorney might be helpful.

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Answered on 7/09/07, 1:53 pm
Jonathan Stein Law Offices of Jonathan G. Stein

Re: Leassed vehicle

Your ability to pay, or lack thereof, is not a defense. You may want to consult with a bankrupcty attorney or try to make payments. If you cannot make payments, they will sue you. Thus, it is important to consult with a bankruptcy attorney as soon as possible.

Good luck.

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Answered on 7/09/07, 2:25 pm


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