Legal Question in Consumer Law in California

auto loan

I was laid off from a job that paid very well, twice. I lost everything from the first layoff and when I was forced to file file 7 of the bankrupsty law. When everything had completed I purchased a car from a local dealer and was financed thru a corporation in California. Now I find I can't make the payments on time because of the difference in income. this corporation will not refinance my loan according to my current pay rate. (a $7.00 less per hour difference)now the company is threating me with legal action because I can't pay as I used to. How can I get some help with this matter. I have only worked at my new job for 5 months and refinancing is not accepted because of this. Not even thru my own bank. this company is also calling my mothers house. I am currently one payment behind and one payment was deferred. They do this only once per year.I don't know what else to do. the California Corp knows the situation, but refuses to help me get my payments lowered so I won't default on the loan.I have gone to every avenue I know to no avail. So I need to know what I can do now??


Asked on 4/29/04, 4:37 pm

1 Answer from Attorneys
Benjamin Berger Berger-Harrison, A Professional Corporation

Re: auto loan

The sad truth is that you promised to make the payments and you're at the bank's mercy if you can't do so.

To cut to the chase, your best option is probably to trade it in for a much cheaper car. Whoever finances the new car will payoff the loan on the car you have now. Because you're probably upside-down in the current car, that amount will be rolled into your new loan.

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Answered on 4/29/04, 4:44 pm


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