Legal Question in Credit and Debt Law in California

Am I legally bound to pay for my repossessed car?

Asked on 10/17/13, 10:31 am

2 Answers from Attorneys

Timothy McCormick Libris Solutions - Dispute Resolution Services
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Only the difference, if any, between what they sell it for and what you owe - including repo fees, and all other fees and charges involved when you don't pay your auto loan payments when due. So if you owe $10,000 on the car, and they repo it, add late fees, repo fees, auction fees, etc. of $1,934, say, your total debt becomes $11,934. If the auction brings $7,500, you still are legally bound to pay $4,434. If the car is worth $15,000, and it brings $11,000 at auction (they never sell for full value at auction) you are legally bound to pay $934. If it brings $12,000 at auction, they owe you $66.

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10/17/13, 10:39 am
Carl Starrett Law Offices of Carl H. Starrett II
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if the car lender follows the proper steps to sell the car in a commercially reasonable manner, they can try to collect the deficiency balance from you. You have the option of trying to settle with them or filing for bankruptcy.

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10/17/13, 10:39 am

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