Petaluma, CA asked in Bankruptcy for California

Q: If I’m late on a car title payment in California does the account go through any kind of review process before repossess

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4 Lawyer Answers

Peter Maurice Lively

Answered
  • Bankruptcy Lawyer
  • Culver City, CA
  • Licensed in California

A: Your title loan may provide you with a short grace period after the monthly payment due date.

Other than perhaps a courtesy call from the title lender regarding the status of your payment, you should expect your lender to repossess your vehicle as soon as it legally can pursuant to your contract.

After repossession, the title lender should provide you with notice(s) of the pending vehicle auction and subsequent balance due on the contract net auction proceeds.

Theodore Allan Greene

Answered
  • Bankruptcy Lawyer
  • Sacramento, CA
  • Licensed in California

A: You be perfectly clear on what they can and can't do - you should read the contract you signed with them. There should be a section spelling out what rights they have if you miss a payment. Whether they follow it exactly or not is up to them. So if it has a grace period of say 5 days it doesn't mean they will repossess on day 6 but that they can. You should not count on them being nice to you. You should communicate with them your situation and figure out how to stay current. If they repossess and sell it for less than you owe them they can then sue you for the deficiency.

Kevin M Rogers

Answered
  • Bankruptcy Lawyer
  • Boise, ID

A: The dealer need only notify you that they are taking the car from you pursuant to the Security Agreement you signed, and should have a copy of. If you’ve misplaced your agreement you can ask them for another copy. You might consider calling the creditor and see they would consider giving you some short extension of time in which to make your payment - unlikely.

Timothy Denison

Answered
  • Bankruptcy Lawyer
  • Louisville, KY

A: Examined your contract closely. It will set out the procedure clearly and what your rights and obligations are under the contract.

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