Legal Question in Credit and Debt Law in California

If you just stop paying, they will repossess the vehicle and sell it at auction. Clearly, if the car is totaled, they will not recover anything at auction (it won't even be the $1,500 you think it's worth). As such, they will then sue you for the deficiency (the balance due after deduction of what they recover at auction). Once they have a judgment, yes, they can garnish wages, they can levy bank accounts, and pursue any and all other assets you own. You may want to investigate further the GAP insurance issue - it may be too late to make a claim on that, and you may be correct that without underlying insurance, your claim may be denied. But, it is worth getting a copy of the coverage documents, reviewing them and probably making a claim even if they are going to deny it. AAA is not responsible for tracking you down to notify you that your policy had lapsed. If they sent it to the last address they have, there is probably nothing to pursue there.

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