Legal Question in Credit and Debt Law in California

Re: Repossesions

typically, anytime any type of "contract" is breached, the breaching party is liable for all damages and costs that flow from that breach to the non-breaching party, less any mitigation of damages by the non-breaching party. in other words, from the facts given, you would only be liable for the $6000 plus any interest on this amount or other related resale costs incurred by finance company to see the car once it repossessed it from you. however, you should not necessarily owe the entire $12,000 they are now seeking from you. if you would like further assistance and/or representation in this matter, please email my law firm asap before the matter gets even worse.

Re: Repossesions

The finance company, under the law, has the responsibility to mitigate their damages. That is, if they can sell the car, then they have to do so, and then go after you for whatever the balance is. However, my recommendation is that you wait things out a bit; frankly, you've done all you can as to dealing with the car, and you don't have it anymore. They are saying they can sue you for the whole amount to scare you. And though no one likes to go to court, if they do sue you, it won't get to trial for the better part of a year. They know this, They alfo know that, since you lost your car, you don't have a lot of money. Remember, they have a duty to sell that car and get whatever money it's worth; the amount that you owe them will decrease by that much. I would not even undertake conversations with the finance company or pay them any money at all until they have sold the car and you know what you're dealing with. Whatever you do, stay calm and don't let them scare you. Remeber, they can call you at home(but not harass you), but they can't call you at work. If they do, put them on notice that they can't and they must stop. Further, don't fax or call them from work; a call and a fax will give them info they can use against you later, if they were to ever try to garnish your wages, etc., after they received a judgment. If you retain an attorney, the attorney will call them and say to make contact with him or her only. This may be a good thing because it will take your mind off of it a bit.

Believe me, the finance company understands what they must do under these circumstances to proceed lawfully. Their hope is that you don't understand what they can do, or what your rights are, so they can intimidate you to do whatever they want. Whatever you do, do not sign any promissory notes or anything right now. Often, a collection agency (if they pass the debt on to a collection agency) will have you do this, but when you do, that allows them to run your credit and do other things if you default. Since, frankly, the worst has already happened(that is, you've lost the car), let things shake out a bit before you make any rash decisions, and continue to consult with an attorney pertaining to everything that they say. Feel free to give me a call if I can be of service.