Legal Question in Credit and Debt Law in California
Volunteer Car Repossession
I voluntarily returned my auto to the finance company. The payments were too high and I could no longer afford it. They auctioned car off, but there is still an outstanding balance yet to be paid. Am I obligated to pay that balance? What could they do if I did not pay???
2 Answers from Attorneys
Re: Volunteer Car Repossession
Simple answer is yes, you do have to pay the difference between what the car was sold for, and what you owed on the car. If you do not pay that amount, the lender can sue you to recover the deficiency. If the lender gets a judgment against you (which is likely), they can begin "enforcement" proceedings -- that means they can attach your bank accounts, and garnish your wages, among other things. Remember too, in California judgments accrue interest at the rate of 10% per annum from the date of entry until paid.
Re: Volunteer Car Repossession
The answer to your question is that if the finance company followed the correct procedure for the "public sale" of your repossessed vehicle you are liable for the deficiency. I would, however, review your financing agreement to see if there are any terms in that document which bear on your liablility. That document will govern the rights between you and the finance company.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
